The Tools I Use to Trade

  • A closer look at the JKonFX dashboards
  • About the performance dashboard
  • About the ADR dashboard
  • About the relative strength dashboard

DASHBOARDS - We've spent a lot of time building out the dashboards on the site over the past several months and I hope you all are making good use of the information. In all my years of trading, this is the information that I seek out most on a daily basis and really a very healthy portion of what I use to trade each and every day. We originally built out the ATR and performance dashboards and just the other week, we added the RSI dashboard. So I thought today would be a good day to highlight each dashboard and how I use them to help with my trading.

PERFORMANCE  - The performance dashboard is the most straightforward of the three. What's so great about the performance dashboard is that the moment you take a look, you already know what's going on in the market on a given day (or timeframe). The performance dashboard is the first dashboard I will look at. It tells me how markets are performing against one another on the timeframe selected and which markets are the strongest and weakest. You also have the option to change the market you are using to compare, though we have the US Dollar as the default. But if I see one currency is really strong or really weak, I can immediately go right to the news relating to that currency to see what's going on without having to come in and read through all the news. 

AVERAGE DAILY RANGE - The ADR dashboard or 'Average Daily Range' dashboard as we call it is exceptionally useful as a tool to let you know what market are showing the volatility on a given day. So when I scan this dashboard, I can see what market has moved the most on the day relative to its average daily range. We have all the markets listed in order and all markets exceeding their respective daily ranges coated in red to highlight these markets have already moved so much on the day that they have exceeded their daily range. What this tells me is that these markets are probably overextended and could actually see limited additional movement on the day now that the range has been exceeded, perhaps setting up a countertrend opportunity.

MORE ABOUT ADR - There are three numbers in each currency box. The number on top represents the % the market has moved of its average daily range. So if the number says 95%, it means the market has moved 95% of its average daily range. The number below on the left is the amount of points the market has moved on the current day, while the number on the bottom right is the actual average daily range in points. I have found average range to be an exceptionally underutilized and highly valuable indicator that has resulted in a lot of amazing trades over the years. 

RSI - But I never trade on when indicator alone per se. I will look at performance and I will look at volatility and I will then look to see just how extended the markets I am looking at really are. So if I see the Yen is the strongest on the day and has exceeded its average range but isn't all that stretched, I won't be interested in trading it. How do I know if it is stretched. Well, this is the third dashboard. Our RSI dashboard is the newest addition and is perhaps the most valuable and insightful of the three.

MORE ABOUT RSI - The RSI dashboard is setup as a heat map and let's you know based on whatever timeframe you are looking at, which markets are the most extended. We have set it up so that markets trading overbought and oversold show in two colors based on just how extended they are. If a market is simply overbought or oversold, we show it in yellow. But if a market is super overbought or super oversold, we will show it in red. So if you come on to the dashboard page and see a market that is in a red box, it should be a red flag warning this market is highly overextended and potentially at risk for a major reversal. 

More dashboards are in the pipeline so stay tuned! Via @joelkruger

PIPELINE - Of course, these dashboards have been set up for what works for me and my methodology. So as a contrarian, it would make sense to use these tools. But even if you are a trend trader, it will certainly be useful to know how markets are performing, which markets have exceeded their average ranges and which markets may be overextended. In any event, please make sure to take full advantage of the dashboard page. I have spent years in markets and have taken the very best of what has worked for me and built it into the site so you can have this information available 24 hours a day. We have some other dashboards in the pipeline and I am am excited to show you all as soon as we get closer to those builds. 

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