What is a heat map of currencies and how to use it?

The heat map of currencies is a tool that in real time analyzes the indicators of changes in quotations of currency pairs. This tool shows how the quotes are changed in comparison with the previous period.

The heat map of currencies, in most cases, has 4 main timeframes:

– 30-minute

– hour

– 5 hours

– daily

Also, the currencies heat map  has a number of indicators, which inform us about changes in their quotes. Below are the main examples of their shades:

 

– saturated red indicator color – the currency pair is lower than the fixed previous minimum;

– saturated green indicator color – the currency pair is higher than the previous fixed maximum;

– Pale red indicator shade – currency pair below the closing of the previous transaction, but above the fixed minimum for a certain period;

– Pale-green tint of the indicator – the pair is higher than the closing of the previous deal, but below the fixed maximum for a certain period;

– gray color of the heat map indicator of currencies – we fix the horizontal movement of the trend by the currency pair.

 

Use a heat currency map is possible for Forex, binary options, digital options, CFDs. You can use this map in conjunction with certain trading systems. You can also use this tool with others. For example, you can successfully combine a currencies heat map with an economic calendar. A virtuoso comparison of these data will allow you to improve your trader skill.

Currencies heat map: how to use it in practice

As we have already noted, a currencies heat map can be used with binary options, forex, digital options, CFDs. In order to use it you need to study its interface. In practice, many use a currencies heat map along with a table of pivot points.

In order to do this, we will need to select the correct interval and study the behavior of the currency pair in it. In order to avoid doubts, use the pivot points table to check how this technical analysis tool works.

And so we take the most spread out currency pair USD / EUR traded. Look for them on the table and imagine that their intersection is a green rectangle. In this case, we can expect a fall in the interval that you have chosen for the heat map of currency pairs.

If on the table their intersection is a bright red rectangle, then in this case it will signal that the rate will be above the minimum for the period you have chosen. In this case, expect an increase.

Use a heat map of currency pairs for trading binary options and digital options. Only consider all events that may affect the value of the asset you are trading.

Other tools from the analytics section

Live Binary Options Chart

– Technical Summary Box

Economic Calendar

Earnings Calendar

Pip Calculator

Trader’s Profitability Calculator

Cross Currency Exchange Rates

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