Daily Forex Quantitative Trading Ideas And Analysis - 17 May 2018

Highlights from the Daily ATS Forex Dashboard report going into Thursday, 17 May-

 As anticipated, the short-term price volatility cycle continues to stay elevated with the  pendulum having clearly swung hard the other way across multiple currencies.

Going into Wednesday, we anticipated an increase in volatility soon for $AUDJPY and $EURAUD. Both of these experienced 136% and 204% of their respective typical daily ranges!

Short-term momentum has turned negative for $EURGBP.

There were no changes in long-term momentum.

Price range has been significantly compressed with volatility expected to increase for $USDCHF and $USDJPY.

Price structure has turned negative for $EURUSD, $EURGBP, $EURCHF and positive for $CHFJPY.

We utilize a statistically-based method of calculating momentum that is robust and adapts to fast or slow moving markets. Additionally, it is normalized so the outputs of one currency can be directly comparable and ranked across the others.

The image with this post ranks short-term momentum for the majors. The strongest momentum is ranked "1" in dark green and "8" is the weakest or most negative. This gives you a visual representation of strength and weakness to construct trades with corresponding pairs and crosses that represent buying strength and selling weakness. The most opportunistic trades tend to be when there is a shift in trend moving toward the top or bottom of the momentum ranks.

Please feel free to reach out to [email protected] if you would like a copy of the full 24-page daily report to know more or if you have any questions. We would love to hear from you.

Make it a great day!