6/1 Analysis: You don’t need to hit homeruns
Right when the London market opens, there aren’t really any good trading opportunities although the market conditions aren’t all bad. You can see we have some currencies to watch as 3 are above the zero line (showing strength) and several down below (showing weakness). This is another case where we need to show patience and wait for the market to come to us.
Let’s fast forward a bit:
After a few minutes, we see some opportunities emerge as the CHF is the weakest currency and getting weaker with a steep line heading downward. Up top, we have the USD and JPY showing strength with steep lines going up.
I personally took the following trade:
- USD/CHF BUY
This pair went up 23 pips total and I walked away with a small profit. Not a huge move, but you can see the market responding once you pair these individual currencies (strong vs weak).
If we now fast forward a bit into the session, let’s look at the Currency Strength Indicator:
Now, the USD and JPY are really strong with huge momentum indicated by the steep lines going up.
The EUR and CHF are really weak with huge momentum to the downside indicated by the steep lines going down.
My trade was…
- EUR/JPY SELL
This move was over 50 pips down.
You will not see these kind of trades analyzing currency pair charts, you will only see these opportunities when you master the analysis of individual currencies.
Watch the entire video analysis below:
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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