5/20 Analysis: Breakout on the NY Open
One of the best ways to get started with individual currency strength analysis is to trade a breakout strategy at the start of a new financial center open.
What that entails is selecting the best strong currency and matching it up with the best weak currency and then placing the appropriate buy or sell trade on that pair.
How do you do that?
- Find a strong currency that’s getting stronger and a weak currency that is getting weaker.
- Look at the far right side of the indicator because that is the more recent and relevant data that shows you current momentum in the market.
When we look at our strength indicator, you will notice the USD (blue line) is the weakest currency and getting weaker (steep line to the far right going down) and the EUR (pink line) is strong and getting stronger (steep line to the far right going up).
EUR/USD BUY would be the trade.
You can see on the NY open, the pair went immediately up for a 34 pip gain.
Keep in mind that we are not trying to predict anything. We don’t know if these currencies will remain in the current trend, sometimes they reverse soon after. All we are doing is identifying the lowest risk, highest probability trade in the market right now. When you become skilled at doing this, you will increase your win rate and catch bigger trends.
Watch the entire video analysis below:
You can see that our Currency Strength Indicator is an effective tool for getting into the very best trends early on and allowing you to ride them out for maximum profits.
Share this article
BECOME AN ELITE TRADER
We invite you to join the exclusive CCT community bringing together top mentors and resources for those serious about being pro forex traders.Join Now