Calendar Momentum Signals Trading View Television

Calendar • Weekly


Summary: Calendar events for the week
Frequency: Scans every 5secs for upcoming news event data
Menus: None
Resizable:

Full calendar from forexfactory.com.

Todays events are highlighted in green and the next event has its cell coloured blue.

The table can be sorted by clicking the header labels, e.g. view high impact events by clicking the [Impact] column header.

The calendar updates automatically in real-time, when news data has been released and will sound an alert and show a pop-up (if you have enabled notifications in your browser).

The pop-up will show a visual of the expected sentiment, so if it's good news, you'll see a green arrow with the relevant data. This was designed so you can be within your trading platform and still receive live updates, without having to click away to a web page; it's like having your own trading assistant constantly notifying you when new data is received.

Calendar • Today


Summary: Todays calendar events
Frequency: Scans every 5secs for upcoming news event data
Menus: None
Resizable:

Simplified calendar, displaying only the news events for today.

The blue box shows which event is next and you can hover over previous events that show a hand, to see what revisions have been applied.

The table can be sorted by clicking the header labels and the toolbar shows a countdown until the next news release.

Calendar • Alarm


Summary: Upcoming calendar event(s)
Frequency: Scans every 5secs for upcoming news event data
Menus: None
Resizable:

Calendar alarm is similar to the calendar::today widget, but shows only the next calendar event(s). You have the option of setting an alarm ahead of an event (1, 5 or 15mins), so you can trade accordingly or reduce risk if there's a deluge of high impact events coming up; the alarm sounds a beep and displays a notification. The alarm remains active when a new event set is displayed, so you'll always be notified using your preferred time setting.

Momentum • Ticker


Summary: Strength of various symbols
Frequency: Updates every second
Menus: Symbols, Timeframes, Total Ticks, Display Legend
Resizable:

Ticker graph shows momentum differences between the previous candle close and the current candles bid price.

Ticker uses the same data-set as other momentum widgets but aggregates the data to display a graph that scrolls as new ticks are received. You can chooses FX Split (EUR, USD, AUD, etc) or FX Full (EURUSD, USDCAD, etc), to identify trends or breakouts in real-time.

There's a menu option to change the number of ticks the graph draws with a default setting of 60 (1min). If you want to monitor 5mins of tick data, change the setting to 300 (60 x 5mins).

The graph draws a zero line (white), so you can easily see which currencies have a positive and negative direction.

If you like to trade the news, you could set an alert in the calendar 5mins before an event and set the ticker to 5mins and wait for your chosen currencies to start moving the right direction before entering a trade. For example, if you wanted to buy EURUSD, wait for the EUR line to be above the USD before placing a trade.

Tape Reading

Excerpt from an article written by Linda Raschke on tape reading and price action:

"Learn to follow the market's price action and read the signals it gives. This can become a strict discipline in itself and the result will be greater confidence that a trade is or is not working.

Tape reading long ago referred to the practice of studying an old-fashioned ticker tape and monitoring prices, volume, and fluctuations, in order to predict the immediate trend. (It does not mean you have to have the ability to read the prices scrolling across the bottom of the screen on CNBC!) Tape reading is nothing more than monitoring the current price action and asking: Is the price going up or down right now? It has nothing to do with technical analysis and everything to do with keeping an open mind.

If you can learn to follow the price action, you will be two steps ahead of the game because price is faster than any derivative. You may have heard the saying, 'The only truth is the current PRICE.' Your job as a trader will become ten times easier once you accept this. This means ignoring news, opinions, and personal biases."



Let's now apply the above to the ticker snap-shot (left). The ticker updates every second and disseminates all the Forex currencies into a simplified set of eight split currencies. The tick total (widget menu setting) has been changed to 900; since each tick represents 1 second and there are 60 seconds in a minute, then 900 / 60 = 15 minutes worth of data. It's important for the ticker to gather enough data, so we can ascertain live price support/resistance areas as the lines scroll. If the period was too short, then these SR areas would be too fleeting to make a determination of trend break-outs.

Another prerequisite, is to minimise the ticker widget width, so its view is portrait rather than landscape. This makes it easier to visually see lines painting a live trend break-out; if the widget was too wide, then your eyes would have to scan more of the screen to make a determination.

Finally, you should use a high time-frame. If you choose 5mins for example, the lines will reset to zero when tick data is received from a new candle. So by using a high time-frame, the lines remain painted without breaks. The time-frame you choose isn't important, since you're viewing live price momentum that's not beholden to time, the only time the ticker knows is when it updates every second.

From the picture, there's only two lines that are making higher highs (AUD) and lower lows (JPY). These split currencies have breached their previous support/resistance areas shown by white horizontal lines, so you'd buy AUDJPY...it really is that simple!

It is left for the trader to decide lot size and duration, but it's a fun way to trade with nano-lots and to keep banging in trades with the hope that you'll catch a larger macro move. If you can do this a few times a day and leave them alone for months (once they become profitable), then you'll begin building a nice portfolio of trades.

It's recommended that you use a very tight stop loss with this strategy, as you'll be jumping on the momentum train in live time; some trades will work, most will not. Your stop loss will keep you in the game and detach any emotion. Once a trade goes 50 pipettes (5 pips) into profit, then you can bring your stop loss to break-even and forget about it.

Momentum • Table


Summary: Strength of various symbols
Frequency: Updates every second
Menus: Symbols, Timeframes
Resizable:

Strength column shows the momentum difference between the previous candle close and the current candles bid price; rows are coloured as either positive (buy) or negative (sell).

You can click the table headers to filter the columns either ascending or descending.

An example trade from the picture, would be to buy the highest (CAD) and sell the lowest (CHF), so you would buy CADCHF. Another example would be to buy CAD and sell USD (2nd lowest row), so the symbol set would be: buy CADUSD - however, there isn't a CADUSD symbol so you need to reverse the symbols and sentiment and your trade would be: sell USDCAD.

Momentum • Pie chart


Summary: Strength of various symbols
Frequency: Updates every second
Menus: Symbols, Timeframes
Resizable:

Pie chart uses the same data-set as other momentum widgets and displays the strengths as a comparison to other symbols.

The picture shows CAD and CHF are the largest movers for the time frame chosen from the menu. The pie slices are seperated from the main chart, to give a visual representation of how large the moves are compared to weaker symbol moves.

The numbers next to the largest moving slices represent the percentage the slice occupies of the whole pie chart and NOT the actual momentum strength.

N.B. The widget maintains aspect-ratio when resized.

Signals • Risk


Summary: RORO (Risk ON / Risk OFF) - Sentiment & Strengths
Frequency: Updates every minute
Menus: None
Resizable:

Market sentiment is either Risk-On or Risk-Off, depending on investors risk appetite. Reading risk sentiment can be as simple as following the direction of the US Stock Market (SP500). There are two main categories to determine risk sentiment in Forex markets:

  • Commodity currencies: AUD, CAD and NZD
  • Safe-haven currencies: USD, JPY and CHF

Risk-On

When the stock market is rising, sentiment is considered risk-On where investors will throw caution to the wind and chase risky trades, i.e. buying stocks or commodity currencies. Buying a high yield commodity currency whilst selling a lower yielding safe-haven currency is called a 'carry trade'. For example, referencing the categories list above, a risk-On Forex carry trade would involve buying AUDUSD, AUDJPY, CADJPY, NZDCHF, etc.

Risk-Off

Conversely, when the stock market falls, investors are risk averse and will have their tail between their legs, i.e. they want to avoid risk. Therefore, traders will pull their money out of stocks by selling shares and would buy safe-haven currencies whilst selling riskier higher yield commodity currencies. For example, referencing the categories list above, a risk-Off Forex trade would involve selling AUDUSD, AUDJPY, NZDUSD, etc. The very nature of selling these currency pairs, means a trader is buying the lower yield safe-haven quote currency, i.e. USD, JPY or CHF. Traders consider the US Dollar a safe-haven currency, because America has a stable economy (compared to other countries) and are backed by the full faith and credit of the U.S. government (even though they're ~$20Trillion in debt)!

If you've understood the above, then you should know the answer to this question: If you buy USDCAD, is your risk sentiment on or off? What if you sell USDCAD, is this risk-On or risk-Off?

There are many articles on RORO, here's one that includes commentary by Dean Malone from CompassFX, an excellent online tutor: The Risk On/Off Concept, which includes videos explaining risk trading analysis.

The FXNA risk widget, aims to disseminate all these variables and displays Forex risk sentiment and its associated currency strengths.

It's important to know which trading style you prefer, i.e. long-term swing trading or short-term intraday trading, so you can choose which risk sentiment (left-pane) to follow.

Swing traders will hold trades for longer and will want to take note of the risk sentiment on the larger time frames like Daily, weekly or Monthly. From the picture, we can see that the Daily and Weekly are risk-On, whilst the Monthly time frame is risk-Off, so there's mixed risk macro sentiment for this particular sentiment snapshot. Shorter time frames are showing risk-Off and are applicable to intra-day (short-term) traders.

Once you've decided which risk sentiment to trade, then you can pick a trade from the strengths in the right-pane. Let's walk through an example: you want to hold a trade for a few days/weeks and you decide risk is on (Daily and Weekly have large green bars in the sentiment pane), so you focus on the risk-On column in the strengths table; the highest currency is the NZD (7.09%) and the lowest is USD (-12.1%), so you would buy NZDUSD while risk remains on.

If you decided to trade a risk-Off sentiment, then you'd use the highest (JPY 3.96%) and lowest (EUR -3.8%) currencies in the risk-Off column of the strengths table, which equates to buying JPYEUR; there's no such symbol in most trading platforms, so you need to reverse the symbols and sentiment and the correct trade would be to sell EURJPY.

Trade size and duration is left for the trader to decide...

TradingView • Chart


Summary: External API from tradingview.com
Frequency: n/a
Menus: None
Resizable:

This widget embeds TradingView data.

You can do many things with these widgets, it's like having your own trading platform in a widget!

The picture shows a resized widget, but if you increase the size, it displays an indicator list where you can draw your trading ideas with lines, channels, etc and publish it to show your friends or peers on forums or take a snap-shot for your own trading journal.

There's a plethora of menus too numerous to list, so have a play and find the sweet-spot to cater for your trading needs...

TradingView • Overview


Summary: External API from tradingview.com
Frequency: n/a
Menus: None
Resizable:

Much like the trading view charts widget, the overview allows you to flick through various symbols and see a line graph.

It's a great way to quickly ascertain sentiment of key indices / currencies.

TradingView • Quotes


Summary: External API from tradingview.com
Frequency: n/a
Menus: None
Resizable:

Another way to visualise data, but this time there are categories you can choose to display key indices / currencies.

Click any row to change the line graph at the top or click the symbol to view the chart in tradingview.

Television • Streams


Summary: It's TV yo!
Frequency: n/a
Menus: None
Resizable:

Select your preferred TV station, to keep you company or up to date on events.

Please email support@fxnewsalert.com if you have an embed code that may be useful for other traders.