Forex Heatmap® Tutorial, Real Time Trading Signals

This is the tutorial for The Forex Heatmap®. The Forex Heatmap® is a live signal system that provides the end users with accurate trade entry management and decision making for 8 currencies and 28 pairs total. The heatmap is a graphical and visual tool and all heatmap features will be discussed in this tutorial. When the trader sees consistent strength or weakness across at least one currency on the heatmap, a trade entry is possible or probable.

Traders can use this real time visual map of the forex market to verify their trade entries. If our trading plans indicate good trends are in place on certain currency pairs, the heatmap can be used to manage trade entries in the direction of the trends of the market. The heatmap also points traders towards supplemental trades and pair movements that may not have been considered in the trade planning process or due to unexpected news and market sentiment. The Forex Heatmap® also assists with assessing the risk of each trade entry. Read this tutorial in it's entirety to help with using the heatmap successfully.

The The Forex Heatmap® has easy to interpret signals, even for new forex traders. It consolidates and summarizes a large amount of information and price data from 28 currency pairs into a visual map for quick trade decision making. It refreshes continuously in real time for hands-free operation with traders in mind. The end user can easily scan and monitor 28 pairs in under two minutes or just check monitor our professional professional alert systems to see what currencies are consistent and moving right now.

Fundamental Basis For The Forex Heatmap

The Forex Heatmap® is arranged logically by parallel and inverse currency pair groups. The eight major currency pair groups all have their own slots of 7 pairs with one common currency. The USD, CHF, EUR, JPY, GBP, AUD, CAD, and NZD pairs are each grouped together. All 8 currencies are stacked on top of each other so they are visible on one page.

Traders can then easily read the pockets of individual strength and weakness within the individual currencies in real time. All traders should review the fundamental basis for the heatmap about parallel and inverse analysis before using this great tool, for a better understanding of why currency pairs move. Here is one example of consistent USD weakness in the image below. This is a valid buy signal for the NZD/USD and likely also the EUR/USD. Simple signals but powerful results. With signals like this, trading the forex major pairs and up to 28 currency pairs is certainly possible. If you would like to look at more examples of consistent signals with corresponding pair movements check our library of trade entry examples.

List of Forex Heatmap Features And Controls

There are two separate heatmaps, the one on the left is for the Asian trading session and the one on the right is for the main trading session. Here is a picture of the top portion of the heatmap "header" area.

Clocks - Each of the two heatmap resets once per day. The Asian session heatmap resets to zero just ahead of the Sydney and Tokyo market trading sessions so you have a fresh set of readings for trading the AUD, NZD and possibly the JPY pairs. The clocks on top of each heatmap also tell you how much time there is before the next reset. The main session (London/Europe/USA Markets) heatmap resets to zero so you get a set of fresh readings for these markets. The current GMT time is listed at the top of each of the two heatmaps. The heatmap has 28 pairs and 56 slots, each currency pair is in two slots. For example the EUR/USD is in the EUR pairs group and also in the USD pairs group.

Zoom Feature - Most web browsers have a zoom feature. Since the heatmap is on a webpage you can zoom in and out to magnify the heatmap 10%, 25% etc. for better visibility, depending on the size of your computer or device screen. Just hit the CTRL and + or - buttons on your keyboard for this enhanced visibility and customization feature.

Arrow System - The heatmap also has an arrow system that points traders towards pairs that are moving the fastest. The purpose of the arrow system is to have an "eye catching" way to get traders to look for currencies with consistent strength or weakness that might give you a good trade entry point. If you look at the image at the top of this page with the USD pairs, you can see consistent USD weakness, so the arrows have pointed you in the right direction. Consistent signals produce much more consistent trades. The arrows do not appear unless at least one pair has 0.25% of movement. So if there are no arrows it means the market is going sideways with no movement and you can see this at a glance

Real Time, Hands Free - The heatmap is programmed so that the page refreshes every few seconds. This way you can set the heatmap up on one screen and watch the charts and execution system on another screen. This hands free operation makes it easier for traders to monitor trade entry points.

Backup Heatmap - The heatmap has a reduntant backup system, so you have access to two heatmaps. If one of our heatmap servers drops off you just click on the backup heatmap link on the dashboard for continuous trading and seamless market monitoring.

Browser/Mobile Display - The heatmap runs on most web browsers without a problem. If you cannot see the heatmaps, shut down and restart your computer and clean your cache memory. Check the heatmap on browsers like Chrome, Microsoft Edge, or Firefox. Also you can uninstall and reinstall your favorite browser to get the latest version, this could also clear up many minor heatmap display issues. The most popular web browsers have different types of settings and controls which allow screen re-sizing, magnifying, customization, etc. If you have an older operating system or browser with add-ons, plugins and extensions this could interfere with the visibility of the heatmap. The heatmap also displays well in almost all mobile devices. Email us with any questions. The Forexearlywarning website meets all google standards for site speed, security, and mobile usability/display.

Our backup heatmap can have a display issue in some browsers and you might get an F5 error message. If you get this error message just highlight the web address and hit the F5 button on your keyboard a few times to get it to display correctly. You can also switch browsers or use the primary heatmap to avoid this display issue.

What Drives The Forex Heatmap® - Price is the driver of the heatmap. Prices create the readings and visual look of the heatmap. Price is incredibly important in our trading system and is used on our moving averages, alert breakout points, pair quotes, heatmap and trade entry points. Price is and always will be the best information to use for any forex trading system or high quality indicators.

Using The Forex Heatmap For Your Trade Entries

The Forexearlywarning website has lots of resources related to analyzing market trends, support and resistance, ranging pairs, etc. We will reference some of these resources when explaining how to use The Forex Heatmap® with your trading. One of our 35 forex lessons is titled forex trade entry points, this is a must read. We also give traders guidance as how to set up some simple rules based forex trading criteria. To understand when is the best time of the day to trade check our lesson on forex trading sessions and best time to trade. For more specific times as to when the check the market for a possible trade, we have several professional forex alert systems that tell you when to monitor the forex market for a trade entry. Start with these four resources and there is additional content and articles on trade entries on our website and blog.

When the heatmap signals are consistent across one currency 7 out of 7 (7/7) and at least 0.20 - 0.25% on each pair, you should consider entering a trade if all other conditions are met. In many cases if one currency is strong and one is weak, at least 6/7 consistency on each currency, trades can also be considered if all of the other entry conditions are met. If you want to see examples of good quality trade entries for various pairs check out our small library of trade entry examples signals and price chart movements.

The heatmap does have limitations. If the market is choppy, in small ranges or no trend is present, the trader must be aware of these conditions, the heatmap signals will not take any of this into consideration. So we advise traders to drill down the charts daily and follow our trading plans across 28 pairs. You can learn to analyze the market with us using our trend indicators and forex market analysis spreadsheet, support and resistance, etc, and all of the tools on our website. It would be foolish to not understand the market conditions when entering trades.

We hope you enjoyed reading our forex heatmap tutorial, links to more heatmap resources are grouped together on our sitemap.