November 3, 2015 Daily Analysis

11/3 Analysis: Pro Trading Requires Focus & Patience

At the NY open, we see a mess on the indicator. If you see this, stay on the sidelines. This is where patience is key as pro traders are not getting involved during these types of market conditions.

Where the focus comes in, however is you really need to be watching the market closely because just a few minutes later, we get a great entry pattern as shown below…

The USD (blue line) is strong and turning steeply up which indicates current momentum in the market.

The CAD (green line) is weak and turning steeply down also indicating momentum.


First, notice the sideways, choppy market that coincides with the mess we saw earlier on our indicator. This is why you would want to avoid those market conditions.

Once price starts moving out of that channel, the entry above is right when we saw the momentum on the indicator. From there, it quickly moves up 25 pips hitting your breakout profit target.

You can watch the entire video analysis below:

[00:00 – 04:29]

[slide]              [1st view indicator: blue / pink up, red / lilac down, rest hover at center]

                        Hello, I’m James Edward from Welcome to today’s Currency Strength Analysis training video and today, we’re looking at a break-out session at the start of the New York Open. And today’s a pretty good example of the importance of patience and focus when you are trading this strategy.

So, this is what the dashboard (or the indicator) looked like at the start of the New York Open earlier today and you can see that, currently, although you have some currencies which have been predominantly strong over the previous hour leading into this session and some that are weak, there are none that are continuing to move away. So, the strong currencies are not particularly strengthening and the weak currencies are not weakening.

So, in that instance you need patience, you shouldn’t do anything  right now, you wait to see how the market starts off as it gets under way.

And, if I fast forward the indicator through a little bit, you’ll–

[slide]              [2nd view indicator: volatile scribbles all]

(continues)… see that it pretty quickly turns quite messy and choppy. This is not a good Market session to be trading and, if you ever see the indicator looking like this, then you do need that patience to just sit tight and wait. If the entry is not obvious–If you haven’t got an obvious strong currency to match against an obvious weak currency and there is no obvious momentum in the Market, then the rule should be: don’t trade. And this is a perfect example of not doing anything.

But, if I move it forward a little bit further–

[slide]              [3rd view indicator: purple / lilac up, green down]

(continues)… we did actually get a very good entry at this stage. But, the way I  just demonstrated you do need patience when the Market is not obvious to start with. You also need a lot of focus: you can’t just sit there casually looking at your Facebook page or browsing YouTube videos. You do need to pay attention and be very focused on what is happening here because the entries are not always easy to see when you are just coming out of a pretty sideways, tight range, which is what we have back here.

The entry that I’m actually looking at, here, is between the (purple) U.S. Dollar (USD) and the (green) Canadian Dollar (CAD). So, you have two currencies where one is moving [highlights w/bright red line] up to strength and one is moving nicely down [highlights w/bright red line] to weakness, here. Those are the ones that I’m looking at to enter: I actually did enter this trade today, myself, as well, but you can see that those are not particularly easy to identify when you’re coming out of this choppy Market condition.

So, let me go over to that chart now. Hopefully, you can see that the (purple) U.S. Dollar (USD) is moving very steeply up to strength and the (green) Canadian Dollar (CAD) is now moving steeply down to weakness, and those two currencies have separated and diverged away from each other, which is why I’m considering this your entry. And, if I go–

[slide]              [B&W vertical line USDCAD.MS]

(continues) … over to the chart now–this is the (purple) U.S. Dollar (USD) against the (green) Canadian Dollar (CAD) and you can see the move that I’m actually looking at, here. You have this [highlights w/horiz red line through / circles flattened bars, ctr] very tight range, here, which is what we were looking at on the indicator just now, but, then the price starts to move [highlights initial climb] up, here. The entry that I actually got involved in and where I would’ve recommended you first saw that on the indicator is around about [draws horiz line near top 2nd longer bar of climb] here, visual entry point. And, from there, up to the top, you can see that the price has, in fact, gone up around about [cross bar / drags diag line to top upper-most bar] 24–25 pips in total and you would’ve got[ten] your 20 pips on that break-out trade. And you can see how that works very, very nicely, as long–

[slide]              [previous 3rd view indicator: purple / lilac up, green down]

(continues)… as you have the patience not to get involved [circles cursor generally] during the choppy periods (back here) and you wait and focus very carefully so that you can identify these break-out trades as soon as they happen–

[slide]              [previous B&W vertical line USDCAD.MS]

(continues) … get into these trades nice and early and capturing that profit nice and early. And this entry actually came at 19 minutes after the Open, so you would’ve had to sit there, patiently, for the first 15 or 16 minutes before the currencies started to move and then, at the 18, 19-minute point, that is when it should’ve been more obvious to you and you could’ve got[ten] involved.

So, that is the importance of patience and focus when you’re trading this or any other strategy.

You can see that our Currency Strength Indicator is an effective tool for picking out the highest probability, lowest risk trade set ups while avoiding market conditions that aren’t favorable. If you keep using this tool every day along with our daily Forex analysis, you will increase your win rate and be on your way to becoming a profitable trader long term.

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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.