Forex trading has seen a substantial evolution in the last 15 years. So much so that anyone can open an account and try their hands in currency transactions. One good reason for its widespreadness and such magnitudes of scalability is due to its host of trading instruments available to traders. The Forex Heatmap is one such example which modern day traders have the convenience of using.
The primary goal of every trader is to analyze the currency status and market movement. Demand and supply are two variables which influence this currency exchanging and fluctuations.
But they are not exactly the only factors which make this arcade change its form and nature. The good thing about such heat maps is that irrespective of form and nature, traders can use it to know exactly how much it is moving and also how much it will move.
Usefulness of the Forex Heatmap:
If you are familiar with the concept of radar which zeros in on important targets, a heat map serves similar utility. Traders employ it to zoom in on price movements as well as daily market intelligence generating. Shifts both upwards and downwards are easily shown and experts refer to such movements as Heat.
Whether its trends, Volatility, Short and Long Trading scope and other pivotal metrics, you will have everything in front of your eye-line.
It is a good advice indeed for beginners to not even think about trading in volatile markets. But for those who want to defy gravity, the Forex heat map is surely an apparatus for them. Life is always nice when it is stable, but in this venture, volatility brings you big money.
So, in order to tackle market volatility, you would want to keep a close eye on those Major pairing. And which one among them seems to have the most feasibility of incurring a volatile change!
Even in a topsy-turvy trading arcade, such heat maps allow you focus only on crucial variables with impressive accuracy and forecasts.
Currency heat maps are flexible with different time frames:
Depending on the type of time frame you abide by when trading, you can use heat maps accordingly. From daily charts, 1 hour, 5 hours or 30 minutes chart, you can customize it as per your trading requirements.
You can also use two heat maps of different time frames simultaneously as well. Right at the top, it will present the best moves of a trading day, yesterday and for the next 24-48 hours. You can also refer to its lows and highs, the range as well as the % change.
Heat maps for MT4:
If you use MetaTrader 4, then you will come across plenty of options around. Just refer to online reviews, download and install it to your MT4 terminal. It works well with CFDs and Stock trading as well - just so if you have an interest in those ventures.
The Forex Heatmap will filter all your traders and make you aware of what you exactly need to do. So get one now and run it through tests on live charts when doing demo training.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.