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If you trade the Forex Markets you probably recognize the following scenario. You have 20-30 currency pairs to follow on 2-4 different time frames leaving you with 50-100 different screens to watch for the right setups. And if you have been trading for a while, you have almost for sure experienced the irritation and frustration of missing the perfect setup, because your focus where somewhere else.
How does the scanner work?
We have been trading our own accounts for many years and have looked everywhere for the right tool to get a complete overview of the Forex markets. In the end, we decided to develop our own software to match our needs.
The purpose of the scanner is to show us in simple graphics, when particular Forex pairs are trending and when the larger part of the big market players agree with the trend.
The Forex scanner is a very helpful tool for day- and swing trading trend-following strategies.
Find out what the big players are doing
In the first part of the scanner you can see which Forex pairs are trending across all markets. This is done with a simple count of trend points from 0 to 6.
If for instance AUD has got 5 points on daily time frame it means that AUD is in an uptrend toward 5 of the other 6 major currencies. If we are seing a buy setup in an AUD-pair, we now know that this is not a stand-alone trend. The trend is bullish across most of the markets on a daily timeframe.
If USD has got 0 points on a daily and 4-hour time frame as in the example above, then we know that USD is in an uptrend toward none of the other currencies meaning that it’s in a down trend towards all of them. This would be a good time to look for selling opportunities in USD-pairs.
Easily spot the attractive Forex setups
When you know what the larger trends in the markets are, it’s time to go hunting for good trading setups. Here we use another function in the Forex Scanner – The Trend Finder.
Here we see a part a colored matrix showing us how the trends are moving in all Forex-pairs on all time frames from daily to 5-minute charts.
The colors are determined by the price being above (green) or below (red) a moving average (EMA) of the price and by the trend indicator called MACD.
In the above example we can see that for instance EURCAD and EURCHF is in an uptrend on all time frames, which gives us a good idea of where to search for good opportunities in the Forex markets.
What is the cost of missing a winning trade?
All traders have tried. Missing the one big winner of the day – and the week. And most traders know that missing this one trade can make all the difference between being a profitable trader or not. So what is the cost to you, when you miss just one of these winning trades per day or per month? For most serious traders the cost is hundreds and maybe thousands of dollars or euros per month.
Now you get access to a tool that increase your chance of getting in on the right trades at the right time.
The Forex scanner is not giving you buy or sell signals. That is all up to you and your trading strategy. The scanner is giving you a perfect overview of the markets, so you know where to look.
What difference has it made in our own trading?
We can honestly say that the trades we find with our Forex scanner are earning us several thousand dollars per month. This is trades that we would normally have missed most of in the daily chaos of the market. No one can focus everywhere at the same time. But with this scanner it is very rare that we don’t get in early on the good up- and downtrends.