A great VPA, volume price analysis lesson, on the daily chart for the Aussie yen and which delivered several excellent days of gains for forex […]. A pivotal day for the British pound as the country goes to the polls in a general election which is likely to define the direction […]. Trading weeks come and go, some are better than others. But the first three days of the current week have been as near perfect as […]. Copyright © Anna Coulling Blog Terms and Conditions Privacy Risk Disclaimer.

If you are feeling pessimistic about the future, perhaps less secure, you may look to move to a smaller house, or perhaps even sell and move to a rental property whilst you wait for better times. You are risk averse and are looking to reduce your risk or have no risk at all and convert your major assets into cash. This simple analogy sums up the decision making which is replicated millions of times every day by investors and speculators around the world and spread across all the capital markets.

If risk lies at the heart of every decision, and every move that the markets make, the big question is how do we begin to analyse and forecast these price moves which appear both complex and apparently random? The answer is using a technique that I refer to as three dimensional trading. The majority traders either use a one dimensional approach to the markets, by just using charts, or at best they use a two dimensional approach by considering the fundamental data alongside the charts.

I use a three dimensional approach which includes an additional factor called relational analysis. The relational aspect considers the linkages between one market and another which provide very strong signals, not only in terms of the money flow, but also in terms of potential growth, risk appetite, inflation and ultimately interest rates which are so important in the longer term. One such simple relationship is that between gold and the US dollar, both of which are considered to be safe havens and which epitomize the two extremes of money.

Gold is classed as a hard asset, and the US dollar is regarded as a soft asset. The relationship between them is vital to understand as a forex trader for two reasons. Commodities provide many clues as to future inflation or deflation which has such a major impact on longer term interest rates, and therefore currencies.

Gold, the purest and most significant of all commodities, provides the bridge between money and all the other markets. The US dollar is the most used and traded currency in the world.

It follows that the relationship between the two will give a clue as to where the currencies are headed. They have a direct relationship where a trend change in one, will have a direct and immediate trend change in the other, so as the dollar weakens gold will rise, and as the US dollar strengthens then the price of gold will fall.

In summary, you need to understand the technical, fundamental and relational factors involved in the currency markets if you want to make good consistent profits. Whilst the 3D approach to market analysis technical, fundamental and relational is key to understanding how the markets work, understanding yourself is equally important, and an area that is generally ignored by most forex traders.

All trading is a mind game, and perhaps forex even more so, given the volatile nature of the markets, and the speculative nature of trading.

As forex traders we are constantly facing the prospect of dealing with fear, of which there are three key elements. What happens in our brains to trigger this fear response, and how can we manage this potentially damaging response when we trade? What happens is that we go into a stress response and adrenalin is released. Once adrenalin has been released we become agitated and are unable to react logically or calmly.

It is not just the times when we feel very stressed. A Three Dimensional Approach To Forex Trading The final book in the library will take your trading knowledge and expertise to a new and much deeper level of understanding, as the three strands of relational, fundamental and technical analysis are explored in detail.

The information in this book will set you apart from every other forex trader and complete your forex trading education.

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Some great price action on crude oil driven by the weekly oil inventories, whilst the US indices remained rangebound. Read More. Another lively forex session using the Quantum Trading tools and indicators. The volatility indicator was once again much in evidence as indeed was the accumulation and distribution indicator for NinjaTrader, helping to define those key levels of price support and resistance which are so important.

The volume point of control was also much in evidence with the primary US indices of the ES, the YM, and the NQ all rotating around key levels as price agreement was reached in the faster timeframes.

The tick charts too also confirmed this lack of interest and participation with the tickspeedometer indicator delivering very clear messages of danger ahead as the red warning signals flashed loud and clear.

The messages were clear — wait and be patient. The trades Another interesting session with the British pound once again in focus for several reasons. First of course Brexit continues to dominate the news, and whenever an item of fundamental news is released it is the context of the bigger picture, and therefore has relatively little impact.

Here we saw a wide spread up candle, yet the associated volume was not in agreement with such a strong move. Clearly the market makers were not participating in the move higher, with the pair duly rolling over a few days later to deliver a clear trading opportunity to the short side. Finally we focused on the new release of retail sales to demonstrate volume price analysis in action on the 1 minute timeframe, and moreover the trap moves initiated on any such release, with the volatility indicator revealing its true power.

This indicator for MT4, MT5, and NinjaTrader describes the journey every currency makes from overbought to oversold and back again and reflecting the Wyckoffian principles of primary and secondary trends, as well as explaining how markets move from accumulation to distribution and back again in all time-frames. All of this is of course underpinned by their core methodology which is volume price analysis and which is complemented with the full suite of tools and indicators from Quantum Trading.

By Anna Coulling Charts from MT5 and NinjaTrader A great forex session this morning in the live webinar with David and myself, and one where we were spoilt for choice in terms of trading lessons and also trading opportunities. As always the currency strength indicator signalled the strength of the move and again using multiple timeframes giving the clear signals we need to select the currency or currency pair for further analysis. One of the keys to success is in applying volume price analysis which then helps to identify whether a reversal is Huge down candle on light volume, before we saw a switch back higher as market absorbed poor numbers, and likelihood of a September FED hike in interest rates disappear faster than snow in July.

The trigger of the volatility indicator purple arrows also signaled high probability of a re-trace to within spread of the down candle. Volume simply validated this point.

A combination of our indicators and volume price analysis check out Anna's book at Amazon on this extraordinary methodology amzn. The volume will once again determine whether any rally is genuine although we also have to bear in mind we are coming to year end when participation and liquidity decrease and volatility increases. View Comments Likes: 10 Shares: 0 Comments: 2. Failing to develop and write a coherent and simple plan is where most forex traders fall down. Which of these you choose to be will ultimately depend on your personality and also the time you have available during the trading day.

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