5/21 Analysis: EUR/NZD +130 Pips
This is a good example prior to the London open showing that there are no opportunities. See how the strong currencies (above the zero line) are moving down and weak currencies (below the zero line) are turning up. This is where you need to have patience and sit on your hands.
However, let’s fast forward it literally only 15 seconds after London opens.
This is exactly the situation we want to take advantage of, the market is quiet before the London open and then when that financial center starts trading, you get huge momentum.
Look at the EUR (the pink line) moving steeply up and the NZD (the purple line) moving steeply down. This is EXACTLY what we are looking for as they diverge away from each other.
So in this case you would want to BUY the EUR/NZD.
On the London open, the EUR/NZD moves up 50 pips straight away without any pull back. Then, a slight pull back on news before continuing the up-trend for over 130 pips.
If we look at our Currency Strength Indicator…
You will see how the trend that you initially could have identified just 15 seconds into the London session continued on.
This also illustrates the importance of not looking at currencies in pairs AND/OR limiting yourself to a few major pairs (like most amateur traders do), because when you do that you potentially miss the most profitable (and lowest risk) trades each and every day.
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. 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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