EURJPY 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
EURJPY
The EURJPY currency pair combines the euro (EUR), the currency of the Eurozone, with the Japanese yen (JPY). The euro, as the second most important reserve currency in the world, reflects the economic health of the 19 countries that make up the Eurozone, including major economies like Germany, France, Italy, and Spain.
Lesson #2
SeaGreen and 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
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 #4
Olive
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. The lower zone is a very strong support for the next trading day, while the upper zone is a strong resistance for the next trading day.
Lesson #5
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. The trading models are similar, but in the case of Violet levels, a FlowZone (FZ) is not designated.
Lesson #6
DarkOrange
DarkOrange levels are closely linked to Violet levels, which are updated every hour, unlike DarkOrange levels, which are updated every 5 minutes. Both the data sources and calculation algorithms are identical. 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 #7
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.
Lesson #8
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.