AUDUSD Education
Below, you will find interesting information about selected DML levels, how they work, and suggested models for playing them in different time frames. Pay attention to recurring statistical patterns or focus on large movements resulting from emerging anomalies. See how DML levels can enhance the effectiveness of your trading strategies.
Lessons
Lesson #1
AUDUSD
The AUDUSD currency pair is one of the most traded pairs in the Forex market. It represents the exchange rate between the Australian dollar (AUD) and the US dollar (USD).
The Australian dollar is considered a commodity currency, meaning its value is strongly tied to commodity prices, such as gold and iron ore, of which Australia is a major exporter.
Lesson #2
SeaGreen & Green
SeaGreen levels are monthly supports and resistances set at the beginning of each calendar month. The price rarely reaches these levels, but when it does, it usually either changes direction long-term or consolidates at that level. This makes it an ideal level for investors and traders who position their trades over a longer time frame.
Lesson #3
Red & Magenta
They appear on the chart on Wednesday afternoons and remain valid for the following week. The main Red levels, known as RedEx, are located at the extreme positions - both at the bottom and top.
Approximately one-quarter of the distance between the lower and upper RedEx levels.
Lesson #4
Aqua
Aqua levels, similar to Violet levels, are retrieved every hour, although their characteristics are quite different.
Violet levels, for reference, typically hold one level throughout most of the day, then shift to a new level in the evening after the Flow Zone (FZ). In contrast, Aqua levels usually appear near the current price level.
Lesson #5
Olive
Olive levels are generated once a day, around 19:00 GMT. This level consists of three zones. The middle zone is located around the price level at 19:00 GMT. The other two zones are located above and below the middle zone, at equal distances from it. The range of these distances varies daily and indicates the potential movement dynamics for the next day.
Lesson #6
Violet
Violet levels are very similar to DarkOrange levels, with the difference being that Violet levels are determined based on the analysis of provided data in hourly cycles.
This results in greater inertia compared to DarkOrange levels, which are much more precise and show possible anomalies more quickly.
Lesson #7
DarkOrange
DarkOrange levels are closely linked to Violet levels, which are updated every hour, unlike DarkOrange levels, which are updated every 5 minutes. However, the more frequent 5-minute recalculations for DarkOrange levels have allowed the discovery of unique setups and models, as well as the observation of many anomalies unavailable for trading on Violet levels.
Lesson #8
Flow Zone
Flow Zone (FZ) levels are liquidity flow-based indicators that serve as key support and resistance levels in the currency market. They are calculated using advanced algorithms that analyze high-value transactions and market dynamics.
Due to their precision, FZ levels can be used by traders to identify critical moments in the market where price direction changes are likely to occur.
Lesson #9
Lime & Yellow
Lime and Yellow levels are important levels associated with Futures contracts. These levels indicate key points where significant transactions have occurred, regardless of the current price level.
As the names suggest, these levels are tied to futures contracts and do not necessarily reflect the current market price.
Lesson #10
JUMP Levels
JUMP levels are a unique group of DML levels, named after the dynamic "jumps" in price, after which a signal appears indicating an opportunity to take a position. These levels are characterized by sharp breakouts of several dozen pips up or down, which often signal a change in sentiment among large market participants, such as liquidity providers.