USDJPY 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
USDJPY
The USDJPY currency pair combines the United States dollar (USD), the official currency of the United States, with the Japanese yen (JPY), the currency of Japan.Â
USDJPYÂ is one of the most important pairs in the Forex market due to the economic significance of both countries and the high liquidity of this pair.
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
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.
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.
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.
The trading models are similar, but in the case of Violet levels, a FlowZone (FZ) is not designated.
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. Both the data sources and algorithms are identical. 5-minute recalculations for DarkOrangelevels have allowed the discovery of unique setups and models, as well as the observation of many anomalies unavailable for trading.
Lesson #8
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.
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.