Cloud Formations
Cloud Physics is the study of Clouds. Clouds can tell many stories and also show possible scenarios that could transpire. Based on our studies we've come to see two major cloud type formations in Currency Markets that show market opportunities in great detail, they are
Cumulus:
- Cumulus means gathering
- White and puffy clouds that gather into tall thick thunder clouds
- In the markets the Clouds go through the same the same formations, start small and then expands. Cumulus represent volatile areas , strong support or resistance, and turning points
- The thicker the cloud the greater struggle price will have
- Major news events may break the Cumulus clouds types with no struggle (ex. Non-Farm Payroll, Speeches, etc.)
Stratus:
- Stratus means strewn or drawn out
- These are the long thin blanket clouds, tend to be flat and wide
- Light areas of support or resistance, easily violated
- Shows consolidation of price, low volatility, no action
- Tends to send many false trading signals because any action may be enough to trigger the criteria
Cumulus:
- Cumulus means gathering
- White and puffy clouds that gather into tall thick thunder clouds
- In the markets the Clouds go through the same the same formations, start small and then expands. Cumulus represent volatile areas , strong support or resistance, and turning points
- The thicker the cloud the greater struggle price will have
- Major news events may break the Cumulus clouds types with no struggle (ex. Non-Farm Payroll, Speeches, etc.)
Stratus:
- Stratus means strewn or drawn out
- These are the long thin blanket clouds, tend to be flat and wide
- Light areas of support or resistance, easily violated
- Shows consolidation of price, low volatility, no action
- Tends to send many false trading signals because any action may be enough to trigger the criteria
Atmospheric Pressure
"A pressure system is a region of the atmosphere where air pressure is a relative peak or break in level pressure distribution." In trading we look at Pressure as supply and demand in the markets. First we use it to measure the intention of the market, and second to verify the currently active pressures in the market. There are two types of pressures we measure
High Pressure:
Low Pressure
When it comes to Low & High pressure in Currency trading, we utilize Market Barometers to find points where pressure builds, wait for conformation, and execute.
High Pressure:
- A High Pressure weather system is a swirling mass of cool air with a high pressure system that pushes air outwards
- High pressure in markets mean upward movement of prices
- Emotional states are higher (pleasant) in bull markets
Low Pressure
- Low Pressure weather systems are swirling masses of warm air which pulls air in and downward
- Low pressure in the markets result in downward momentum of prices
- Emotional states are more worried or concerned in falling bear markets
When it comes to Low & High pressure in Currency trading, we utilize Market Barometers to find points where pressure builds, wait for conformation, and execute.
Climate
According to Wikipedia Climate is: "is the long-term pattern of weather in a particular in a particular area. Here at CurrencyClouds™ we focus on the long term picture in the Currency markets. Certain aspects and levels are respected in a greater way on the bigger picture.
In the currency markets the Climate is the overall picture of the market. With the aid of the Clouds we are able to quickly grasp the current Climate and how we can profit from it.
Here are some key facts about Market Climates:
In the currency markets the Climate is the overall picture of the market. With the aid of the Clouds we are able to quickly grasp the current Climate and how we can profit from it.
Here are some key facts about Market Climates:
- Climates are the big picture, they focus on what HAS happened and what is happening. It helps to find out what will happen.