November 24, 2015 Daily Analysis

11/24 Analysis: 15 Minutes to Profit Today

This pattern wasn’t anywhere close to being obvious when the London market opened but 5 minutes into the session, we get the JPY (yellow line) which had been strong gaining momentum to the upside while the weak GBP is turning steeply down.


This is where I entered the trade and my entry corresponds to the image of our indicator (above) when the move was fairly obvious. The pair went down over 60 pips total and you would have easily (and quickly) hit your profit target of 20 pips per our breakout strategy.

Watch the entire video below:

[00:00 – 04:33]

[slide]              [1st view indicator: pink-orchid high up, white-lilac lowest]

                        Hello, I’m James Edward from Welcome to another Currency Strength Analysis training video. Today we have quite a good example of a nice, clean, break-out trade at the start of the London Open. So, this is what the indicator looked like at the start of the London Open earlier today and the example I’m going to show you today is how break-out trades can appear very, very quickly. It may not be obvious right at the start.

So, if we do our initial analysis, you have a very strong Euro up here to the top side and, to the weak side, the more obvious one is the New Zealand Dollar. However, you know by now, that there is no entry there because neither of these currencies is continuing in their direction. So, the weak currency is not getting weaker and the strong currency is not getting stronger.

However, you may be looking at those anticipating to see if they do, actually,  progress as the Market opens. The trade that I’m going to draw your attention to that is actually the break-out trade from today is [circles center line currencies] not even remotely obvious on the indicator at the moment.

We will be looking at the British Pound–which is the red line and the Japanese Yen–which is the yellow line. You can see that, right now, they are bunched very, very closely on the zero line. However, if I fast–

[slide]              [2nd view indicator: red dives, yellow climbs]

(continues)… forward on the indicator five minutes into the Market, this is how the Market developed. So, very, very quickly, within five minutes after the Market opened, the Japanese Yen pushed very strongly, within five minutes, very strongly up to strength. That is a strong currency which is continuing to strengthen and the British Pound moved very rapidly down to weakness and you now have them as the absolute weakest [points red] versus the absolute strongest [points yellow]. Look at the steepness on the British Pound line.

So, that is actually the break-out trade. Not at all obvious right at the Open, but if you’d sat there and waited for the five minutes, just given the Market a little bit of time to open up and get moving, this would’ve been the obvious trade. (This is actually a trade that I took myself, trading my more advanced system which coincided with the break-out trade.)

[slide]              [B&W vertical line (bar) chart: GBPJPY.MS]

(continues) … This is the British Pound against the Japanese Yen. So, before the Market opened–or, let’s just look at before the Market opened first of all. Over the previous hour-and-a-half, [points top-most bar down to top 1st longest plunge] not an awful lot had happened. There’d been only a 20-pip range, each price bar very, very small. Then, as the London Market comes into play [creates cross point top 1st longest bar, draws diag line down to lowest pt] from the Open (up here) down to the lowest point, you can see that is a 65-pip move.

It was obvious on your indicator at the five-minute point, so this [points top 1/3 1st longest bar] would’ve got[ten] going, you’d have seen this gradually developing–

[slide]              [previous 2nd view indicator: red dives, yellow climbs]

(continues)… over this period (here) [points climbing yellow] as they slowly move up to strength and slowly move down to weakness. You should’ve had your eye on that.

[slide]              [previous B&W vertical line (bar) chart: GBPJPY.MS]

(continues) … Looking at the chart, you could see it was developing. And, then, at the five-minute point, which is what we–

[slide]              [previous 2nd view indicator: red dives, yellow climbs]

(continues)… have here, it is particularly obvious. So, this is the point you could’ve entered. (This is the point that I–

[slide]              [previous B&W vertical line (bar) chart: GBPJPY.MS]

(continues) … entered. I actually [creates cross pt top 2nd long bar] entered around about here, just as the five-minute price bar opened.) [draws diag line down to to bttm 4th bar rt] You can see that, from there, you’d have, very, very quickly, within the space of 15 minutes, you’d have taken your 20-pip profit.

Even if you’d been a little bit slow on the trigger today and you’d waited an extra five minutes, so, eventually, on the close of this price bar–(Let’s go on the worst-case scenario, which I often like to do, to show you how robust the system is.)–[incomplete statement. Creates cross pt bttm 2nd long bar] Worst-case scenario, you’d entered at the bottom of this price bar. Even then, with a small pull-back [diag line to top 1st bar rt] of five or six pips, initially, the price did carry on down [diag line to lower half 8th more bars rt] and you’d have very easily hit your 20-pip take profit break-out trade. So that really emphasizes the importance of not–

[slide]              [previous 2nd view indicator: red dives, yellow climbs]

(continues)… being too trigger-happy at the start.

[slide]              [initial 1st view indicator: pink-orchid high up, white-lilac lowest]

Again, if I rewind this and go to the Open, there are no obvious trades, so, don’t feel that just because the Market is open you should be entering a trade! Your job, as a professional trader, is to sit there and wait for the high-probability trades.

There are no high-probability [points generally] trades right now, but you wouldn’t have been waiting long.

[slide]              [previous 2nd view indicator: red dives, yellow climbs]

(continues)… Five minutes into the Market, you get this [points yellow/red currencies] move. There’s your signal to–

[slide]              [previous B&W vertical line (bar) chart: GBPJPY.MS]

(continues) … enter. You get that [points along 1st plunging long bar] confirmation on the price chart where you see this [points 2nd longest bar rt] confirmation from the Open.

You enter and, very, very quickly [draws cursor down mid-way abt ctr screen] you take that 20-pip profit. That is a good example of exactly–

[slide]              [previous 2nd view indicator: red dives, yellow climbs]

(continues)… the kind of conditions that you should be waiting patiently for so you are entering with the highest probability and the odds on your side.



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James Edward
James Edward has been a successful Forex hedge fund manager & educator for over a decade. He founded Complete Currency Trader, a London based firm that has consistently trained individuals to become professional and profitable traders long term using the individual currency strength analysis methodology. CCT is an elite Forex educational firm and has a reputation second to none with over 90 positive reviews and an overall 4.538 out of 5 rating on the third party verification site Forex Peace Army. James’s affable personality, expert knowledge, notoriety for getting results, and steadfast dedication to his clients, has secured his position as one of the most trustworthy, liked, and in demand authorities in the industry.