Currencies Heat Map – An Overview

Currencies heat map is very interesting to any trader. A currency options trading strategy using this technique will certainly allow for faster entry and exit times, while minimizing loss. While it is still relatively new, many experts are already using it. In fact, currency trading is one of the few strategies that can beat the markets virtually every single day! That’s a pretty amazing claim to make, but it is not an overstatement. It also makes a lot of sense.

Currencies heat map

How does it work

How does currency trading work with a forex heat map? Well, the Forex Heat Map is updated daily during the trading day, usually starting at the Options Trading session. If you’re in any discipline of scientific biology, and particularly if you work primarily with transcriptomic information, you’re probably already familiar with heat maps utilized for just about as long as there have been biological researchers. Currencies are no exception. As mentioned earlier, the Forex Currency Heatmap visualizes currency pairs in a way that highlights how they are headed in terms of price movement over time.

Fundamental analysis

This visualizer can be used for fundamental analysis as well. A currency trading strategy that relies on more options for its main ingredient should utilize the heat map to make analysis easier and more effective. How can this be done? There are actually two ways to create the visualizer: 

  • One from the trader’s own analysis of how the market is trending and moving in real time;
  • One from having an expert render a live heat map of the market using actual currency pairs.

When to use visualizer

How do you know when to use the Visualizer? The best times to use a forex market heat map are when you want to focus on specific areas of your investing or trading strategy. For example, if you’re into technical analysis of currencies, like fundamental analysis, then it would be good to use heat maps to analyze the data and tell you which currency pairs are headed in different directions. Mostly, they will have arrows pointing to the direction of movement, but sometimes you may also see a little spike in particular currency pairs. It would be best to take note of this and understand what the directional signals are. From there, you can make decisions regarding when to trade and where to set your stop loss and trade exit.

False signals and trends

What’s the catch, though? The catch is that when you use a heat map for forex trading, you get a lot of false signals and false trends. The current map is simply a tool to highlight areas in the chart that show areas of: 

  • High volatility; 
  • Trends;
  • Movement. 

As currency traders, we all want to see our trading strategies pay off, so when we see areas like this in a heat map, we want to identify the trend it is leading to and place our trades accordingly.

Online services

There is an easier way to spot these trend signals, however. That would be to use a free online service that automatically updates itself with the latest currency data from around the world. A forex currency trading program can easily spot these trends and move your trades accordingly. If you’re new to forex trading, it’s best to try a demo account first, by registering for the IQ Option, for example, as these programs do not require any risk, since they are given by real users, for free, on a trial basis.

Now, you may be asking, “If there is such a thing as a forex currency trading program, how do I find a program that works?” There are many different types of these software programs, including some that are based on a more traditional technical analysis style. They may analyze price: 

  • Pattern;, 
  • Support and resistance indicators; 
  • Pivot points; 
  • Moving averages; 
  • Retracements; 
  • Envelope patterns, etc… 

Some programs are designed specifically for different currency markets, while others are designed to spot strong and weak currencies in real-time. This makes them ideal for any type of trader, regardless of what they are trying to accomplish. Just make sure you pick one that has been around for a while and has a proven track record.


So, if you’re interested in getting into the market quickly and taking advantage of what’s happening now, but don’t know how to get started, this may be just the solution you’re looking for. Since this information comes in real-time, you will have instant access to it. This can give you a lot of an edge, as many successful forex traders already know how to spot currencies that are about to go on a major swing. If you’re new to forex, you should definitely take advantage of this technology. If you’re already an experienced forex trader, however, you should stick to what you know and keep trading with the tools you have at your disposal.

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