I get a lot of emails from traders asking if my strategies work in certain markets or not, which my website may not discuss often. The answer is basically yes. The proprietary price action trading method I use is applicable to many different global markets, not just forex.
Given that forex trading has been so widespread and easily accessible in recent years, many traders think that I am only looking at the forex market, but this could not be further from the truth.
For us price dealers, learning to read the footprint of money on the chart means that we can trade in virtually any market we want and make a profit. However, I'm not saying that I should apply my strategies to every price chart in the world, not even nearby! In fact, I recommend and teach my students to become “specialists” in a select handful of markets. This lesson explains some important details and price trends of my favorite markets so that you can get a feel for them and understand why I am trading them.
Don't limit your trading options
Opportunities exist worldwide, and I trade a variety of markets to take advantage of them, from indexes to commodities to forex and sometimes even stocks. You don't want to limit yourself to just one asset class, as this also limits your chances of long-term success in the markets.
For example, if you limit yourself to forex only, it means that you are not doing well when the main forex pairs are consolidating, and often all are consolidating at the same time. If you expand your focus to other markets and opportunities, the potential opportunities and returns increase. Hedge fund traders rely on a diversified portfolio of instruments for many good reasons, and as private retailers we should do the same!
For those of you who focus exclusively on Forex, the fact is that volatility is not always present in the main FX pairs we are looking at. So it makes sense that you should regularly look outside the forex market so that you are not without a chance of winning. With very low volatility, there are very few trading opportunities. In short, you have to act what moves to make money as a trader!
Understand MetaTrader product specifications
OTC, CFD, spot, futures, forex, commodities, indices, to the beginner, all of these different products and acronyms can seem very confusing and somewhat confusing. Let's simplify everything here and now.
Spot markets – – The "spot rate" of a market is noted by central banks and brokers around the world. For example, the current price of the EURUSD-Forex pair is given as the "spot rate". OTC markets (i.e. over-the-counter markets) have no central exchange and trading is done electronically directly between two parties (e.g. a broker and a retailer like you). This trade is based on the spot price of the underlying market. The contract sizes and the price per point can vary from broker to broker.
CFD – This stands for contracts for difference. It is a product that is offered by institutions or brokers and reflects the underlying financial product. So when you trade a CFD, you're not dealing directly with the underlying market, but with a “mirror” market, and that's how retailers usually access it. These mirror markets are created "above" a futures or spot market. For example, you can trade a gold CFD that reflects the gold futures market (referred to as the futures CFD), or you can trade a gold CFD that reflects the spot gold market (referred to as the cash CFD) .
- Gold (and some other markets) is traded both as a spot market and as a futures market. With MetaTrader you can trade a cash CFD based on the spot market over the counter. The actual futures product is usually located on a regulated stock exchange in Chicago, New York or London. Different contract sizes and a different price per point value are common for brokers.
- Forex is just a spot market, but there are forward exchange deals that are traded on major exchanges, but we do not trade them.
- Commodities and indices can be offered on a spot or futures market. However, if you want to trade locally, they become a cash CFD. If you want to trade futures, it is a futures CFD.
Note – To trade the same markets that I am discussing in this article, you can access them through I use the MetaTrader platform here.
The main markets I trade in are …
I regularly watch and track major Forex pairs, S & P500, SPI200 (and other major stock indexes), crude oil and gold are my favorite commodities. This is the majority of the markets that I like to actively watch and trade, but I look at others from time to time. In recent years, these markets have contributed significantly to my trading profits, and I have also traded them in the recently won trade competition.
EURUSD – Euro / Dollar Forex currency pair
The EURUSD, also known as Euro / Dollar, is offered as a spot FX product (Forex) on the Metatrader platform I use. The spot rate of the EURUSD at a given time reflects the current exchange rate between the euro and the US dollar. For example, if the rate is 1.1700, it means that 1 euro is worth $ 1.1700. In other words, the euro is stronger than the dollar (as it is now).
- Market behavior & price action trends
The EURUSD tends to be the most heavily traded currency pair. As a result, something can be more choppy than, for example, GBPUSD or AUDUSD. However, price action signals, particularly in the 4-hour timeframe and daily charts, often pay off in this pair. It tends to respect support and resistance levels fairly well and is characterized by persistent trending periods, followed by somewhat longer sideways moves, especially within large trading areas. The EURUSD is one of my favorite markets, mainly because so many people trade in it that many of the obvious signals tend to be self-fulfilling.
GBPUSD – sterling / dollar forex currency pair
The GBPUSD, also known as Sterling / Dollar or Pound / Dollar, is offered as a spot FX product (Forex) on the Metatrader platform I use. The spot rate of the GBPUSD at a given time shows the current exchange rate between the British pound and the US dollar. For example, if the rate is 1.3300, it means that 1 pound sterling brings $ 1.3200. In other words, the pound is stronger than the dollar (as it is now).
- Market behavior & price action trends
GBPUSD tends to be more volatile than, for example, EURUSD. This means that it tends to make bigger moves, bigger breakouts, bigger trends, etc. Price action signals are usually larger / more pronounced in this pair than in other FX pairs. Overall, I really enjoy trading the GBPUSD, and since it is not quite as popular as the EURUSD and has higher volatility, it tends to move more and consolidate a little less, which translates into more potential profitable deals for an experienced price action dealer.
USDJPY – dollar / yen forex currency pair
The USDJPY, also known as the dollar / yen, is offered as a spot FX product (Forex) on the Metatrader platform I use. The spot rate of the USDJPY at a particular point in time shows the current exchange rate between the US dollar and the Japanese yen. For example, if the rate is 110.00, it means that $ 1 will earn you 110.00 yen. In other words, the dollar is stronger than the yen (as it is now).
- USDJPY market behavior and price trends
I will be the first to admit that the USDJPY can be a troubled trading market. Irregular movements can occur even in longer periods. That said, there are sometimes persistent and very predictable trends, and price action signals tend to work well in this pair. It is also a very technical market, which means that key key levels are very predictable and adhered to. Just pay attention to the "chop".
AUDUSD – Aussie / dollar forex currency pair
The AUDUSD, also known as Aussie / Dollar, is offered as a spot FX product (Forex) on the Metatrader platform I use. The spot rate of the AUDUSD at a given time shows the current exchange rate between the Australian dollar and the US dollar. For example, if the rate is 0.7200, it means that 1 Australian dollar brings in 0.72 cents of a US dollar, in other words, the USD is stronger than the Australian dollar (as it is now).
- AUDUSD market behavior and price movement tendencies
The AUDUSD comes from Australia and is probably my favorite currency pair. As I wrote in my article on why you should have a favorite market, I suggest that you choose a forex pair that you really feel comfortable with (maybe your home currency against another major) and really “ become intimate ”. As I said in the intro, if you become a specialist, you will make money. It does not differ from any other area, whether it is medicine, sports, business or investment. The more you become a specialist, the more money you will earn. AUDUSD tends to be somewhat less volatile than GBPUSD and EURUSD, but is a very technical market. When there are trends, it is very nice to act and it respects the level very well. Daily chart signals usually come into their own very well. I love trading the AUDUSD.
NZDUSD – Kiwi / Dollar Forex currency pair
The NZUDUSD, also known as Kiwi / Dollar, is offered as a spot FX product (Forex) on the Metatrader platform I use. The NZDUSD spot rate at a particular time shows the current exchange rate between the New Zealand dollar and the US dollar. For example, if the rate is 0.6500, it means that 1 kiwi dollar brings in 0.65 cents of a US dollar, in other words, the USD is stronger than the Kiwi dollar (as it is now).
- NZDUSD market behavior and price movement tendencies
KIWI is very similar to the AUDUSD. Obviously, New Zealand and Australia are neighbors next door, so they tend to have similar catalysts for their currency movements. That's why the NZDUSD and AUDUSD charts often look pretty similar. Note, however, that the NZDUSD can have very troubled periods. This chart moves sideways in about 50% of cases. This is why I prefer the AUDUSD over the NZDUSD in most situations, but the NZDUSD is still a very good main FX pair to look and trade when there is a signal.
Gold – commodity (precious metal)
I am exchanging Spot Gold (XAUUSD), which is actually a cash CFD. Gold is obviously the most popular precious metal in the world and is also the most frequently traded.
- Gold market behavior and price movement trends
Gold tends to do very well between consolidation periods. However, consolidation can be very troubled and sometimes difficult to act on. Gold can be volatile and large directional movements are not uncommon. This means a large profit potential, but also a loss potential if you are not qualified and well prepared. Gold is one of my favorite commodities.
Crude oil – Commodity (energy)
Crude oil is offered as a cash CFD (spot symbol – USOIL) or as a futures CFD (symbol – WTI.fs). Both are fine for trading. However, keep in mind that the prices are different. Crude oil is the most popular energy product for trading and besides gold it is one of my two most popular raw materials.
- Crude oil market behavior and price trends
Crude oil is a market that I trade in fairly often, probably more than gold. I would say it is my favorite retail good, and for good reason. Crude oil tends to experience long periods of strong trend / directional movements, and it typically also respects key levels of support and resistance very well. However, oil can be very volatile, so it is not for amateurs or inexperienced traders.
- Crude oil will often solidify for weeks or months after a large move
S & P500 – US stock index S & P500
The S & P500 is offered as a futures or cash CFD on the Metatrader platform that I trade on. You will see the futures CFD symbol as S & P.fs and the cash CFD symbol as US500.
The S & P500 is made up of 500 of the largest and most important companies, most of which are based in the United States, and is the world's leading benchmark for investors of all kinds. All shares in the S & P 500 Index are traded on the New York Stock Exchange and NASDAQ.
- Market behavior and price development trends of the S & P500
The S & P500 is another market that I trade quite often. It is a very good buy and hold market as US stocks tend to want to follow a higher trend. However, in times of recession or economic turmoil, this market can sell out extremely quickly and profits can be wiped out quickly. Although it is a relatively “easy to use” market, a solid understanding of price trends and market dynamics is required to benefit in the long term.
SPI200 – Australian stock index
The SPI 200 futures contract is the reference stock index futures contract in Australia based on the S & P / ASX 200 index. It offers all of the traditional benefits of equity index derivatives. The SPI 200 is one of the top 10 equity index contracts in Asia based on trading volume.
The SPI200 is offered as a futures or cash CFD. The CFD symbol for futures is displayed as SPI200.fx and the cash CFD symbol is AUS200.
- SPI200 market behavior and price movement tendencies
The SPI200 is a specialty of mine, so to speak. I've been tracking it and trading it for over a decade. This market tends to turn from key levels and we want to try to "fade" a lot. In other words, when the price goes to a key level, we try to trade the other way or to fade that level. This can deter many traders, as it often reverses strongly in the other direction, especially at the start of a strong movement. But for a savvy price-action trader, these strong moves from key chart levels are enough to keep your mouth watering.
DAX – German stock index
The DAX (German Stock Index) is a blue-chip stock market index that consists of the 30 large German companies that are traded on the Frankfurt Stock Exchange.
The DAX is offered on Metatrader as both a futures and a cash CFD. The futures symbol is displayed as DAX30.fs and the cash CFD symbol as GER30.
- DAX market behavior and price development trends
The DAX acts in a similar way to the S & P500, as it often tends to be quite good and sometimes tends to go up over a longer period. Then the market will apparently sink by 10-15% in a few days. Not for the faint of heart. However, this volatility is a blessing if you understand it and know how to read the price movement and properly get into your trades and then exit.
Why I don't look at EVERY MARKET …
One thing you are probably thinking is why I am not trading many different markets. After all, I could trade hundreds of products you are thinking of! Well, I limit myself to the most liquid products and then to the markets where the price action signals lead to more consistent results, so I know I have an advantage.
Let's look at a few examples of why I prefer the main market to its more “obscure” or less traded counterpart:
GBPUSD vs. EURGBP:
Below we see a daily GBPUSD chart. Notice the strong down and up movements and the inner bar signals that have worked well so far. This is just the current daily chart view of the past few months and we can see that it is moving well and not very choppy at all.
Compare the GBPUS chart above to the EURGBP chart below, which shows the same period, and you can see that trading is much more confusing and sterile (not many good signals, if any). This chart looks ugly and if you followed it every day and tried to trade it you would probably lose.
Gold vs. Silver:
I prefer gold over silver. It is more liquid and widespread and moves better. Who doesn't want to trade gold? It tends to swing a lot and tend a lot (good things for price dealers), and the signals that form tend to be quite pronounced.
In the daily gold chart below, notice the nice trend and the clear signals that have formed within this trend. Compare this to the silver chart below (with the same time period) and you will notice quite a difference.
This chart is messy and choppy, so trading it is much more difficult than the gold chart above. It doesn't take a rocket scientist to figure out why …
The proprietary trading method for price promotions I work with is applicable to many different global markets, not just forex, as you can see from the examples above. Just because there are literally hundreds of different markets you can trade doesn't mean you should all trade. I have found that as a specialist in certain markets, you significantly increase your chances of long-term trading success. You can trade every single precious metal out there, but why? I trade gold because it is the largest and best precious metals market and the price action signals provide the most consistent results.
If you would like my weekly and daily analysis on the above markets, I will analyze their price movements and discuss possible trading signals in the newsletter for my members' daily trading configurations. In addition, all of my price gauges and strategies for indices, commodities and forex can and should be used as explained above and can even be applied to major stocks. As mentioned above, the chances are almost limitless if you learn to read and weigh the “footprints” created by the price movement on a chart. However, not all chances are the same and therefore you have to become a specialist!
Note – If you want to trade the same markets that I discussed in this article, you can access them through them I use the MetaTrader platform here.
What do you think about this lesson? Please leave your comments and feedback below!