How to use FX Trend Radar?

First let us go through the components in FX Trend Radar dashboard interface and what they meant.

FX Trend Radar Interface
The Timeframes are listed at the top horizontal column and the Pairs are listed in the left vertical column.

The arrows and box in the dashboard means:
FX Trend Radar Legend

NOTE:

FX Trend Radar is NOT an indicator giving signals to buy and sell. It is only intended to help you identify trends in the currency pairs and shorten your trading analysis process. You should base your entries using other methods such as price breakout or retracement.

So what if you see a Young Uptrend, Strong Uptrend or Matured Uptrend?

Young Uptrend

The uptrend has just started. (Price has just broken from a range bound period or downtrend) The trend is not yet confirmed. It could well be a false breakout and return to a range bound period.

If you are a risk taker and go long (buy the pair), your reward is potentially the greatest as you stand to ride through the whole of the uptrend move.

If you are currently short (sold the pair), this is a signal for you to close your trade. The tide has most likely turn against you.

Strong Uptrend

This is a confirmed uptrend. (Price has been trending upward and there is strong upside momentum)

You can enter into a long trade directly or wait for your entry signals, etc, a breakout or retracement. Entering long gives the highest probability of a winning trade.

If you are currently short, you should be in deep red. Close the trade now!

Matured Uptrend

Price has been trending up for quite a period of time.

We do not recommend going long at this moment as there is a high probability of a price retracement. This does not mean that the uptrend is ending. Price could still go into a range bound period before continuing with its uptrend.

If you are currently long, you could take partial profit or close your whole trade. However be prepared to go long again if your own entry method says so.

Young Downtrend

The downtrend has just started. (Price has just broken from a range bound period or uptrend) The trend is not yet confirmed. It could well be a false breakout and return to a range bound period.

If you are a risk taker and go short (sell the pair), your reward is potentially the greatest as you stand to ride through the whole of the downtrend move.

If you are currently long (bought the pair), this is a signal for you to close your trade. The tide has most likely turn against you.

Strong Downtrend

This is a confirmed downtrend. (Price has been trending downward and there is strong downside momentum)

You can enter into a short trade directly or wait for your entry signals, etc, a breakout or retracement. Entering short gives the highest probability of a winning trade.

If you are currently long, you should be in deep red. Close the trade now!

Matured Downtrend

Price has been trending down for quite a period of time.

We do not recommend going short at this moment as there is a high probability of a price retracement. This does not mean that the downtrend is ending. Price could still go into a range bound period before continuing with its downtrend.

If you are currently short, you could take partial profit or close your whole trade. However be prepared to go short again if your own entry method says so.

No Trend

There is no trend currently. Price is most likely in a range bound period or there is strong volatility on both sides (prices swinging violently up and down)

We do not recommend entering any trades.

However if you are a mean reversion trader, you could execute range bound trades, selling at resistance and buying at support.

Large number of arrows in the Dashboard –

This is an EXTREMELY POWERFUL indication that prices of many pairs are moving in trending fashion. This usually happens when there is a strong theme (etc. risk aversion in end 2008) at play in the WHOLE currency market. Prices of pairs are correlated and usually move in tandem. When you see a whole bunch of arrows in the dashboard, traders are moving prices in a direction supported by the theme in play. Volume in the market is likely to be high too.

By observing the number of arrows in the dashboard, you will gain a better feel of the market at a shorter time, without the need to look at all the fundamental reports, which usually create more confusion to your thoughts!