EURCAD 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

EURCAD

Trading the EURCAD pair is characterized by a specific dynamic resulting from the differences in the monetary policies of the European Central Bank (ECB) and the Bank of Canada (BoC). Additionally, the value of this currency pair is influenced by macroeconomic factors such as industrial production data, inflation, employment, and changes in commodity prices, particularly oil, of which Canada is one of the major exporters.

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Lesson #2

Plum - Resistance

Plum levels are one of the key elements within the context of the so-called Flow Zone – areas of liquidity changes that play a significant role in the flows of large capitals in the forex market.

These levels act as resistances, although they are located much further from the current price, making them rarely reached but extremely significant in the price movement analysis for the EURCAD currency pair.

Go to Lesson 2

Lesson #3

MediumOrchid - Resistance

This is another crucial element within the context of the so-called Flow Zone – areas of liquidity changes that play a significant role in the flows of large capitals in the forex market.

These levels act as resistances, being closer to the current price compared to Plum levels, making them more frequently reached and equally significant in the price movement analysis for the EURCAD currency pair.

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Lesson #4

Coral - Resistance

Coral levels are a key component within the context of the so-called Flow Zone – areas of changing liquidity that play a significant role in the flow of large capitals in the forex market.

These levels act as resistances and are closer to the current price than Plum and MediumOrchid levels.

Go to Lesson 4

Lesson #5

Khaki - Resistance

Khaki levels are among the closest resistance levels relative to the current price, making them frequently reached and breached. These levels are characterized by a high repeatability of returns to the levels after being breached. They_ are particularly useful during the Asian session and the beginning of the European session.

Go to Lesson 5

Lesson #6

Sienna - Support

Sienna levels are a support level located close to the current price.

This level is situated at a similar distance from the price as the Khaki level, which is a resistance. Sienna levels play a crucial role in maintaining the price above this level, providing solid support in short-term time frames.

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Lesson #7

DeepSkyBlue - Support

DeepSkyBlue levels are a support level located further from the current price, similar to the MediumOrchid level – which is a resistance – but below the price.

These levels play a crucial role in maintaining the price above this level, providing solid support in medium- and long-term time frames.

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Lesson #8

SpringGreen - Support

SpringGreen levels, part of the DML levels for the EURCAD currency pair, are characterized by precise price reactions when reached.

When the price approaches the SpringGreen level, it often finds solid support, preventing further declines. This dynamic highlights the critical role of these levels in stabilizing the market and supporting the price in short-term perspectives.

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Lesson #9

DarkOrange

DarkOrange levels are closely linked with Violet levels, which you will learn about in the next lesson.

DarkOrange levels are retrieved in 5-minute cycles throughout the day. Around 16:00 GMT, a FlowZone (FZ) appears on these levels, for which a special trading model has been prepared. These levels are represented as continuous lines between consecutive FZ zones.

Go to Lesson 9

Lesson #10

Violet

Violet levels, part of the DML levels for the EURCAD currency pair, are characterized by precise price reactions when reached. When the price approaches the Violet level, it often finds solid support or resistance, preventing further declines or increases. This dynamic highlights the critical role of these levels in stabilizing the market and supporting the price in short-term perspectives.

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Lesson #11

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.

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Lesson #12

Red & Magenta

Red levels are weekly supports and resistances. They appear on the chart on Wednesday afternoons and remain valid for the following week.

Red levels consist of a total of six horizontal lines: three above the price and three below.

The main Red levels, known as RedEx, are located at the extreme positions - both at the bottom and top.

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Lesson #13

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.

Go to Lesson 13

Lesson #14

DodgerBlue

DodgerBlue levels represent an innovative analytical tool for forex traders.

These are particularly significant price levels that have gained recognition especially among investors operating on the EURCAD currency pair. Their unique feature lies in regular updates every 5 minutes.

Go to Lesson 14

Lesson #15

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 FZ. In contrast, Aqua levels usually appear near the current price level.

Go to Lesson 15

Lesson #16

Flow Zone Levels

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.

Go to Lesson 16

Lesson #17

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.

Go to Lesson 17

Decline all