The New ZoneTraderPro Forex Currency Tool
ZoneTraderPro is pleased to announce the ZoneTraderPro Forex Currency Tool which has been designed to provide very powerful real time information about the Forex currency market. The Forex Currency Tool measures the strengths and weaknesses of currency pairs which have a direct correlation to the stock and bond market.
All ZoneTraderPro customers have access to this powerful tool at no additional cost. Contact ZoneTraderPro via the contact page and the software will be emailed to you.
The Forex Currency Tool displays as both an indicator on the bottom of the chart, and colors the chart background the same color as the indicator, giving the trader instant information while reading the chart. Here is an example from Friday of a Tick Divergence / Exhaustion trade.
ES Trading Examples
The 1st thing I notice on the chart above is the divergence of the currency market leading into the trade. The indicator is telling you the market is getting weaker, not stronger. It is really important to note that the theory behind both Exhaustion and Tick Divergence is to identify situations where the market rising or falling without justification at the NYSE in the underlying cash market. In 1 minute the ES rises with no buying at the NYSE, which gives us Tick Divergence and the light red colored bars on the Currency Tool indicator tells us the Forex Currency Tool is saying the Forex markets are falling. The trade is good for 3.5 points. As noted in previous posts, a great place to put a target is just above the blue counter trend support zone, because 50% of the time, price does not trade through that zone.
Here is a 6.75 point Tick Divergence trade from Thursday.
Here is what the 20 point sell off on Wednesday afternoon looked like. ZoneTraderPro and the currency tool both got you short with a Tick Divergence / Exhaustion trade before the news hit. The indicator turns green both times the market traded at the 2031 lows. This is not pointed as a trade opportunity even though there is a tick divergence pattern there, but as a reason to exit a trade.
Avoid a Losing Trade with the Forex Currency Tool
Here is how the tool avoids a losing Exhaustion trade.
And the ZoneTraderPro Forex Currency Tool is not just for the ES
The ZoneTraderPro currency tool also works on the bond market and in the pre-market.
The colors for the bond market are reversed because the bond market is inversely correlated to the stocks and currencies. So when the colors are red you want to buy bonds and when they are green you sell the bonds. The currency tools does allow you to customize the colors, but for purposes of this picture, I wanted to emphasize the inverse relationship. This chart above is from Friday after the release of the jobs number.
Here are two more ZN Bond Market support and resistance trades at about 1030 EST that same day.