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Using a PRICE PAGE INDICATOR

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By ITREX


Market Overview

A Sample page of the Major Pairs and the Cross-Rates are quite useful and having the financial Futures, Precious  Metals and the Indices in a separate screen montior should be good.
A Sample page of the Major Pairs and the Cross-Rates are quite useful and having the financial Futures, Precious Metals and the Indices in a separate screen montior should be good.

Price Composition

A ' Price Page Indicator ( PPI ) ' shows a summary of prices that includes spot / cash foreign exchange prices, US currency index and the financial futures prices, the major currency cross rates, precious metals Gold and Silver prices, International Crude Oil prices, the Dow Jones, the Nikkei Average, the CAC and DAX stock indices are just a few. Although, these line-up are the basic composition that is quite necessary to have an overall view point of what is currently happening in all major markets. As price movements affects one with the other and weighing the trend's responce to any particular economic report.

Since the ' Time Zone ' from the main resource center needs to be considered; having a reliable trading system should be in place specially for those who consider trading these markets seriously. However, there are certain modifications that has been made on the currency section where it would reflect a one price overview of the market behavior of the currencies being traded actively so every trader / strategist could define these market through the price behavior and patterns that it makes.


3 Time-frames EURO

The four 4 hour chart of the Euro's prices started from the Asian session and moves towards European & US Sessions.
The four 4 hour chart of the Euro's prices started from the Asian session and moves towards European & US Sessions.
The Daily confirms the trading range from the high Asian price to the US Low price. However, the lows may or may not be established in Europe.
The Daily confirms the trading range from the high Asian price to the US Low price. However, the lows may or may not be established in Europe.
The weekly prices provides the trading range of the current and previous week that provides an excellent guide of its average price range.
The weekly prices provides the trading range of the current and previous week that provides an excellent guide of its average price range.

The Psychology behind the PPI

To have a better overview of the market activities, it is important to have a comprehensive understanding of the relationship of prices that affects one another in a single page that summarizes these actions in actual working conditions. The law of supply and demand factors plays a significant role because of the cause and effect of major commodities and exchange rates are vital in determining the directions of one market with the other. This is the main essence and significance why a one price page indicator would help investors and traders to be able to have a glimpse of the market in one place at the same time.

For some, it may be quite taxing to view them because of the continuing price movements which may sometimes be confusing to a novice and an inexperienced trader / investor. However, for the more sophisticated and trained analyst / strategist it would be most helpful in analyzing the overall market because it provides them real time reports and price movements.

The price indicator also gives important signals on price patterns and behavior related to the underlying investment of the client. Where major trading decisions are made due to this summary. The reports or issues related to the prices will show why such price directions are made and will also show which of the trading sessions has the most effect on the prices. It may either be in the European, Asia or US trading sessions.

As shown in these three charts; where the prices can be defined not only on their time frames but what the prices provide as a guideline of the near term direction, the price trading range of the previous days and more importantly for the week. Which can also be compared with the moving averages of the currency which in this case is the Euro as an example.

Some signals may give misleading interpretations especially if the trader would always refer to the prices on the technical charts. This is why the price indicator was conceptualized; to establish a price parameter that could stand unbiased from the technical charts. One needs to up the notch higher in trading analysis, not being dependent on what is on the computer screen, the technical charts and should be able to create a basic trading psychology as well as a methodology that would be useful while trading the market with confidence.

These charts that are seen on the trading platforms are only price guidelines of the currencies that are being traded. One has to look at the overall scenario and more on a psychological price movements away from what everyone else sees on their screen. In this way, the trader / investor can remain concentrated on the behavioral pattens than any related technical or fundamental factors that maybe influencing the movement of the prices.

From the previous topics; by being focused on the price indicator; it is the next level of due diligence and research that an individual investor / trader can start training on the process of deduction while the prices are moving. As we have mentioned from our previous article on : Strategic Trading Techniques on the different time zones which can also be an advantage specially for super positioning in the market.

It may take some time to develop such a keen eye for market analysis because of so much data that needs to be digested. Being able to absorb all this in one sitting can be very tiring.


FX Market Updates:

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