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Today in the forex market the AUD was weak on all pairs. This drove movement on this entire group of pairs.  There was also some USD strength in the market today, and the AUD/USD dropped considerably down to one major support level. Based on the current trends on this pair, it should break this support level and continue lower. The AUD weakness in the market today is shown below on our real time trade management indicator, The Forex Heatmap®.

The CAD/CHF has been in a down trend for nearly three weeks and is stalling at support. Based on an analysis of the CAD pairs we are now looking for a reversal back up on this pair. We are now looking for CAD strength to return to the market. You can begin to look for buy signals on this pair in the main trading session tomorrow morning using The Forex Heatmap®. We are looking for the reversal on the H4 time frame and in a day or two on the D1 time frame as well. This forex analysis of trends was performed using multiple time frame analysis using parallel and inverse pairs. These market analysis techniques are the best available for forex market analysis.

Today in forex trading the market signals showed AUD weakness. This drove strong price movement on several pairs. There was also some EUR strength in the market. This pushed the EUR/AUD much higher, and this pair has no nearby resistance on the larger time frames. We would consider holding on to this trade as the upside potential going forward is very good. The AUD/JPY also dropped on the AUD weakness, however the JPY pairs have mixed trend signals, so we would scale out lots or exit this sell trade. The live forex signals you see below are from The Forex Heatmap®, a real time visual map of the forex market.

Today in currency trading the AUD strengthened, driving price movement on these pairs. T he AUD/USD moved up and could be forming a new D1 uptrend. We will continue looking to set buy plans on this pair. The GBP/AUD also dropped due to the AUD strength and is nearing support on the smaller time frames, we would consider scaling out lots on any sell trades on this pair. The currency trading signals you see below for these pairs are from The Forex Heatmap®.

Today in forex trading the JPY was weak on all pairs. This dive strong price movement on these pairs. The NZD/JPY made a strong move to the upside. Other pairs like the EUR/JPY  and CHF/JPY also broke higher. These pairs have and have no nearby resistance on the larger time frames, so you can continue to hold. The trading signals you see below are from The Forex Heatmap®, a real time map of the forex.

When you use leverage to trade the forex market your returns can be much higher than most typical non leveraged investments or non-leveraged trading. You only have to put up a small amount of money to control a much larger amount. Small movement can result in much larger percentage profits. Losses can be managed with stop orders and moving stops to breakeven. To open a leveraged position, you only need to deposit a fraction of the total trade value, called the margin. 

Example Leveraged Forex Trading Return Calculation #1:

Account balance: $10,000 USD

Pair: EUR/USD Buy

Deposit Amount for Trade: $1000 One Standard Lot

Leverage: 100:1 

Position size: $100,000 which is $1000 x 100

Scenario: Market moves +75 Pips In Your Favor

Profit: $750

Return on Investment: 75% which is $1,000 profit divided by $1,000 initial investment

Total Return on Account: Since account starting balance is $10,000 return on account including non-margined funds is $750 divided by $10,000 which is 7.5%.

If you make 4 trades in one month with 75 Pips return each on EUR/USD your account balance will be $13,000 at the end of the month which is a 30% return on the total account.

USD IMAGES READY

Example Leveraged Forex Trading Return Calculation #2:

Account balance: $10,000 USD

Pair: GBP/JPY Sell

Leverage: 50:1 

Deposit Amount for Trade: $2000 One Standard Lot

Position size: $100,000 which is $2000 x 50

Scenario: Market moves +200 pips in your favor 

Profit: $133 sounds way too low

Return on Investment: 6.6% which is $133 profit divided by $2,000 initial investment.

Total Return on Account: Since account starting balance is $10,000 return on account including non-margined funds is $133 divided by $10,000 which is 1.33 %.

If you make 2 trades in one month with 1.33% return each on GBP/JPY your account balance will be $10,266 at the end of the month which is a 2.66 % return on the total account.

GBP/JPY IMAGES READY

Risk Management

these examples are simplified to focus on the mechanics of leverage in forex gains.

When you use leverage to trade the forex market your returns can be much higher than most typical non leveraged investments or non-leveraged trading. You only have to put up a small amount of money to control a much larger amount. Small movement can result in much larger percentage profits. Losses can be managed with stop orders and moving stops to breakeven.

To open a leveraged position, you only need to deposit a fraction of the total trade value, called the margin. 

Example Leveraged Forex Trading Return Calculation #1:

Account balance: $10,000 

Pair: EUR/USD Buy

Deposit Amount for Trade: $1000

Leverage: 100:1 

Position size: $100,000 (calculated by multiplying account balance with leverage) 

Scenario: Market moves 1% in your favor

Profit: ___ Pips or $1,000  

Return on Investment: 100% which is $1,000 profit divided by $1,000 initial investment) 

Total Return on Account: Since account starting balance is $10,000 return on account including non-margined funds is $1,000 divided by $10,000 which is 10%.

If you make 4 trades in one month with 1% return each your account balance will be $14,000 at the end of the month which is a 40% return on the total account.

USD IMAGES READY

Example Leveraged Forex Trading Return Calculation #2:

Account balance: $10,000

Pair: GBP/JPY Sell

Leverage: 50:1 

Deposit Amount for Trade: $2000

Position size: $100,000 which is $2000 x 50

Scenario: Market moves 200 pips or 1.33% in your favor.

Profit: ___ Pips or $669

Exchange Rate at Entry: 150.00 (1 GBP = 150.00 JPY)

Exchange Rate at Exit: 148.00 (1 GBP = 148.00 JPY)

Position Size: With 50:1 leverage, you control $100,000 worth of GBP/JPY (2,000 * 50).

Number of GBP sold: $100,000 / 150.00 = 666.67 GBP.

Buying GBP back: When the rate drops to 148.00, you buy back those 666.67 GBP for JPY: 666.67 GBP * 148.00 = 98,667.16 JPY Initial Investment = $2,000 (or equivalently, 300,000 JPY at the entry rate of 150 JPY per USD) Final Value in JPY = 98,667.16 JPY, which at the exit rate equals $669.37 (98,667.16 JPY / 148 JPY per USD) Profit in USD = $669.37

Return On Investment: ($669.37 / $2,000) * 100 = 34.7%

Total Return on Account: Since account starting balance is $10,000 return on account including non-margined funds is $669 divided by $10,000 which is 6.7% on one 200 pip GBP/JPY trade.

If you make 2 trades in one month with 6.7% return each your account balance will be $11,338 at the end of the month which is a 13% return on the total account.

GBP/JPY IMAGES READY

Risk Management

these examples are simplified to focus on the mechanics of leverage in forex gains.

Forex traders struggle to make pips because they cannot see the pips. With this effective forex chart set up you will see the pips much more clearly and open up the door to increasing your pip totals across 8 currencies and 28 pairs.

Examples Of This Logical, Effective Chart Setup

Here are two examples of this chart setup for the AUD and USD currencies. You can duplicate this chart setup for the top 8, most liquid currencies total with up to 7 charts on one screen.

Click on any image below to expand to full screen.

You can see all the AUD and USD pairs lined up side by side with our live signal system. The Forex Heatmap®. It is clear that the USD weakness and AUD strength is driving the movment in real time. The currency pairs moving the fastest will always be the strongest versus the weakest, day after day. If you enter a buy or sell trade you can check the higher time frames to see if the pair is trending.

Why Would Forex Traders Set Up The Charts This Way?

Individual currencies drive the movements in the forex market. If one currency is consistently strong or weak in real time you should look for pips there. This is an irrefutable fact. But forex traders suffer because they simply ignore this fact and use technical indicators, do risky news trading or random trade entries and guessiing. This indicator and chart setup is totally logical.

How To Set Up Your Charts This Way

Traders can set up their forex charts on any time frame with up to 7 pairs on each screen using the metatrader profiles. Set up the charts like you see above on the smaller time frames to guide your trade entries, then set them up on the larger time frames to see the overall trends and look for price targets. We recommend this setup for the top 8, most liquid currencies. USD, CAD, EUR, GBP, CHF, JPY, AUD and NZD pairs, 28 pairs total.

Fast Navigation, Currency To Currency

If the action is heating up on more than one currency, you can navigate through the charts quickly from currency to currency. Simply click on the hotkeys on your keyboard or use the dropdown menu in metatrader to move through the profiles on any time frame. Very simple but usually ignored by most traders. Ctrl F5 and Shift F5 hotkeys can be used to navigate up to 7 charts at a time.

When To Check The Forex Market For Strong Movement

Most of the significant market movements occur in the main trading session, and a few times per month in the Asian session or at other times during the day. If you use the news calendar and our other professional alert systems correctly, you can spend less time in front of the computer and still see most of the volatility in the forex market.

The New Forex Industry Charting Standard?

Forex traders are looking for better choices in their charting systems and trading systems. Setting up your charts by individual currency in this manner will become the standard for making pips in the future. Forex traders are consumed by technical indicators and are looking for better choices. They know technical indicators are ineffective and news trading is risky. This chart setup can be use on a permanent basis by any forex trader, instead of going from indicator to indicator week after week. Forex trades want logic, not more indicators.

Summary and Conclusions: Forex traders are looking for logical, consistent trading systems that go with the flow and momentum of the market. Top notch charting systems like this one will provide traders qualifying for funding the ability to see the pips much better and likely get their funding much easier, with much lower drawdown.

Today in the currency trading the NZD weakness and CHF strength drove the movement cycles on these groups of  pairs. This caused the NZD/CHF to sell off in the main forex trading session.

As of right now at 1200 Noon Eastern Standard Time the NZD/CHF pair is hitting one strong support level. For trade management, we would scale out some lots, or possibly close out the trade completely. The currency strength trading signals you see below are shown on The Forex Heatmap®, which is a real time visual map of the forex that gives real time currency strength readings. If you would like to learn more about the forex heatmap you can read the forex heatmap tutorial, which will give more detailed information on how this great signal system works.

The best chart setup for forex traders to use for highest visibility and highest profit potential is having multiple charts on one screen with one common currency. Compare this best in class charting system that leverages individual currencies to any other system to always know what pairs are moving in real time. We will show examples of how to set up the charts for the top 8 most liquid currencies and 28 pairs.

Why Set Up Your Forex Charts This Way?

Individual currencies drive the forex market. Each currency pair has two currencies and you must know the condition of each currency to safely enter trades. Technical indicators are completely flawed and ingnore this simple consideration. With the chart setups presented here traders will set the bar much higher for pip totals they expect to make.

Two Examples Of The Best Chart Setup

We use this chart setup for 8 currencies and a total of 28 different pairs. The examples below are for the CAD and USD pairs but this chart setup can be duplicated for the top 8, most liquid currencies.

Click on the chart images to expand to full screen.

The chart setups are consistent with our live market indicator, The Forex Heatmap®

Navigation is very fast from currency to currency. Traders can see to up to 7 pairs at a time on one sceen is easy using the hotkeys on your keyboard or via dropdown menu. Hotkeys are Ctrl F5 and Shift F5 keys. Use the smaller time frames plus the live heatmap signals for your trade entry management, then use the higher time frames like the H4 time frame and larger to check to see if the pair you are trading is trending up or down. We have a more complete discussion of what is the best time frame to use in these situations.

How To Set Up These Charts

The charts you see above can be set up using the Metatradr profiles functionality and features. Setting up the metatrader profiles can be done with these instructional videos. You can set up the charts using the lowere time frames for your trade entries to use with The Forex Heatmap. Traders can also use the same chart setup on the larger time frames like the H4 and larger to check the overall trends on the market.

Add Professional Alert Systems

Now you can set up our suite of professional forex alert systems to notify you as to when the market is moving. Whether it is the news calendar or our push alert system, we can notify traders of when the market is moving to spend less time in front of the computer while seeing the movements better on the charting system. Find out more about all of our alert systems and always be informed when the forex market is moving.

Summary and Conclusions: This forex chart setup is the best in class and all forex traders should use it. We present example charts here for two currencies. The same logic applies to 8 currencies and 28 pairs total. This professional, hedge fund quality chart setup will lead to successful trading, and is the most accurate chart setup available. Beginners or experienced traders will gravitate to this charting system and have a great understanding of how to make pips.