Weakness on USDCHF Alerted To By Smart Center Pro

TradeGuider Systems LLC is revolutionising the way we trade the financial markets.  In 19th October 2016, TradeGuider released Smart Center Pro at the Chicago Mercantile Exchange, showcasing how Smart Center works and how it could assist traders to find high probability trade setups. There are many things that have to be taken into consideration when analysing the markets, these are:

  • Volume
  • Support or Resistance
  • Trend alignment on Multiple timeframes
  • The closing price and the range of the bar
  • Is there weakness or strength in the background

Lucky for us our Volume Spread Analysis (VSA) software and Smart Center Pro takes all this into consideration and sniffs the market for us. Just like the trade setup on the USDCHF today 31/5/2017. The first thing that we look for are areas of Ultra-high volume and as we can see on the chart below we have a wide spread down bar on ultra-high volume. This is the biggest volume on the chart for quite some time, so it’s a very important area. You will normally see price will get attracted to areas of Ultra-high volume. You can see on the chart how the price of USDCHF drops and returns to the ultra-high volume areas and likewise to the upside.

USDCHF 1-hour Chart - Smart Center Pro
USDCHF 1-hour Chart

I had a trigger level set to 0.9734, the low of the ultra-high volume bar and firstly I was waiting for trend alignment to the downside and our Smart Center Pro software alerted to us that there was trend alignment on the majority of the time frames as highlighted on the image below.

Smart Center Pro Showing Trend Alignment on USDCHF
Smart Center Pro Showing Trend Alignment on USDCHF

 

Smart Center Pro Alert – Entry To The Short Side – USDCHF

Once we get trend alignment and our trigger point is set, then we look for VSA principles to go short and that is what we received on the 5 min chart. When price broke below our trigger, Smart Center Pro was sniffing for VSA principles to the short side with a sign of weakness 199 No Demand. This signal means there is no buying pressure and to expect selling to occur and that’s exactly what we got. Entry was the low of the confirmation bar, which was the next bar. A nice scalp trade.

USDCHF 5 Min Chart - Smart Center Pro
USDCHF 5 Min Chart

You see Smart Center Pro reduces most of the heavy lifting. It notifies you when there is trend alignment and also when you need to act as VSA principles appear on the chart. It reduces analysis paralysis as it enables you to focus on the instruments that are in trend alignment and if you trade many instruments, this tool is a time saver alerting you to when VSA principles appear and on which time frame so that you can then make an informed decision whether you should take the trade or not.

If you have any further questions about anything in this article or general questions about Volume Spread Analysis, please send me through an email to info@superchargewyckoffvsa.com

I wish you consistent profits

Danny Younes
Professional Investor & VSA Expert
www.superchargewyckoffvsa.com

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