Description

Description of the reports and contents.

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The FX Signal Setups Groupings:

Uptrend. Last Signal: Green (bullish):
Shows setups that are in an upward trend.
Alert. Early Trend Change Upwards:
Shows setups that are at the start or recommencement of a potential upward trend.
Last Signal: Neutral (grey)
Shows neutral setups (neither long or short).
Alert. Early Trend Change Downwards:
Shows setups that are at the start or recommencement of a potential downward trend.
Downtrend. Last Signal: Red (bearish):
Shows setups that are in a downward trend.

 

The Strength Meter Forecast

Strongly Up: 1
Neutral: 0
Strongly Down: −1

The strength meter forecast is included as a degree of confidence in the trend and last signal reading

When the trend is up, a positive strength meter forecast reading indicates that the uptrend trend is still in place, whereas a negative reading indicates that the uptrend may be weakening or changing.

Similarly when the trend is down, a negative strength meter forecast reading indicates that the downtrend trend is still in place, whereas a positive reading indicates that the downtrend may be slowing down or changing.

 

The Daily Pivot,  Support and Resistance Levels:

Daily pivot, support and resistance levels are given above the main price chart. These correspond to the last values of the adaptive trend channel.

 

The Signal Setups Chart: Description

  • The high, low close price for the last thirty days are shown with a coloured high low bar for the short term signal.
  • The x axis shows the number of days lookback.
  • The adaptive trend channel is constructed using PDL’s proprietary algorithm. This price channel identifies the short term trend and intraday pivot, support and resistance levels.
  • A momentum oscillator is shown below the price chart. Often when momentum slows down a price reversal may be imminent.

 

The Signal Setups Chart: The Signal Bars: 

The signal is obtained from the HLC price bar,the Adaptive Price Channel and the Momentum Oscillator.

Green, bullish
Red, bearish
Grey, neutral (flat or uncertain direction).

 

The Signal Setups Chart: The Alerts: 

A alert is given when the signal bar changes colour indicating that there may be a possible trend change.

A downward alert has a downward arrow above  the new red bar. It is advisable that this is confirmed by a negative strength meter forecast reading.
An upward alert has an upward arrow below the new green bar. It is advisable that this is confirmed by a positive strength meter forecast reading.

 

The Signal Setups Chart: Trend Line
A bullish or weakly bullish trend is indicated by a green support line below the price bars.
A bearish or weakly bearish trend is indicated by a red resistance line above the price bars.

At times both the green support and red resistance lines may be drawn and there may be a breakout either up or down.

Other Considerations and Confirmation:

It is always important to use the charts alongside economic releases and breaking news as these may be accompanied by a sudden change in direction. It is always importance to be aware of the economic releases of the day and how these may effect the currency. (eg A strong economic release from the USA is often accompanied by a strengthening of the USD).

An Economic Release calendar can be found at:

Economic Release Calendar

Disclaimer

The Signals, Adaptive Trend Channel, Momentum Oscillator and Strength Meter forecast are the output of an algorithm and are not to be taken as investment advice.

They 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 or in the use of the reports..
Historical Data may be subject to revision which may affect the signal, channel and oscillator.

 

 

 

 

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