Screening For Setups
Each day (Mon-Fri) a large number of Forex markets, Indexes, USA and UK Equities along with Gold, Silver, Platinum, Copper and Oil are screened for a setup and then the most promising charts selected for a potential intraday entry. The charts show the open, high, low and close bars for the last 30 days along with trend lines, the Open, High, Low and Close Forecast Distribution for the next trading day and a comment on whether the algorithm bias is up or down.
Example of a signal setup chart:
The charts show the H:L:C bars for the last 30 days.
Short term bullish trend lines are shown as a green line under the daily HLC bars.
Short term bearish trend lines are shown as a red line above the daily HLC bars.
Open (yellow), High (green), Low (red) and Close (blue) Forecast Distributions for the next trading day are shown on the right hand side of the chart. The distributions show the range in which the next Open, High, Low and Close are expected to be.
An algorithm calculates the upward or downward bias for the next trading day.
Intraday Entry from a daily Signal Setups Chart:
For intraday entry, an intraday chart must be examined.
It is recommended to look at an intraday chart on a one hour time frame to establish a good risk reward entry point, stop loss and target in a market.
Trading View is an excellent site for intraday charts and information.
Breaking News and Fundamental Analysis:
It is important to be aware to breaking news and any fundamental analysis that may effect the markets. Breaking news may also be followed with a sudden reversal in trend.
Forex Factory is an excellent site that has an economic calendar and news.
Last algorithm update: 29 December 2020
In this update the Open, High, Low and Close Forecast Distributions were introduced replacing the previous intraday support and resistance levels. Improvements were also made to the intraday bias calculations.
The above information is the output of algorithms on price alone. It is not to be taken as investment or trading advice and must be viewed together with fundamental analysis and breaking news. Past performance is not indicative of future results.
Every effort has been taken to present the correct information, however, neither Price Dynamics Ltd nor its staff are liable to any error that may occur