Spot Forex Trading Part 5: the Forex Heatmap

This article is Part 5 of a series of 9 articles dedicated to help anyone to trade the foreign exchange.

The Forex Heatmap gives a spot forex trader an easy-to-interpret forex data visualization tool that organizes the data from 20 currency pairs into color-coded results for fast and accurate entry decisions.

The majority of forex traders don’t know the condition of the market when they enter a spot forex trade.

There are two reasons for this. The first one is ignorance. Most forex traders trade one pair like the EUR/USD and are looking at off-the-shelf standard technical indicators on one timeframe. They continuously force trades into the EUR/USD when there is no trade there at all. In the meantime other pairs are moving hundreds of pips, they simply cannot see the larger picture.

The second reason is that once a forex trader has decided that they to want to know the condition of the entire forex market when they enter a trade, or that they want to trade the best currency pair available, they see that it is not possible because up to now there were no good quality market forex scanners are available. When a forex trader searches for such a tool that gives them a picture of the market they find that a tool like this may not exist.

This is where the Forex Heatmap enters the picture. The Forex Heatmap quickly and conveniently verifies your entry decision into a spot forex trade across 20 pairs. Trading accuracy improves dramatically and you will also know when to NOT enter a trade.

Typically at the point of entry the spot forex trader must worry about placing the trade and making sure that the correct pair and direction are entered on the trading execution platform while watching a price chart. There simply is not time to click on the charts from many pairs to verify the entry decision or the overall market condition and this is where mistakes happen and emotion takes over. Traders need a quick entry verification tool that streamlines the entry decision process and speed is critical.

The Forex Heatmap solves all of these problems. It is a dynamic visual tool that consolidates the data from 20 currency pairs using real time data and translates the data into a visual map. When you combine the Forex Heatmap with a simple trading plan, knowledge of support and resistance, parallel and inverse analysis, and the direction of the trend you now have a powerful combination of high quality analytical and decision making tools for trading. Emotional trading gives way to logical trading. The full potential of 20 currency pairs is now yours not just the one or two currency pairs you have focused on in the past.

Heatmap technology is becoming more common in business, financial and technology, and the Forex Heatmap is leading the way to create successful spot forex traders.

About the Author:

Mark Mc Donnell is the lead trading plan writer for www.forexearlywarning.com, an inexpensive trading plans service available to all spot forex traders. He is also the developer of www.theforexheatmap.com.

He has many years of experience trading stocks, equity options and the spot forex. He has spent the last four years of his career devoted solely in studying the movements of the spot forex, conducting trend analysis, and determining how this impacts retail level forex traders.

© Copyright 2008, www.forexearlywarning.com