6/11 Analysis: Avoiding Whipsaws on the Open
Right before the London open, we can identify a strong and weak currency but conditions aren’t favorable for an entry because there is no steep line indicating a trend is continuing with momentum.
If we fast forward just two minutes into the session, it looks like this:
You can see the NZD (purple line) is strong and turning up and the GBP (red line) is weak and turning down. If you are trading the breakout strategy that I teach, this is enough to put your pending orders in.
- GBP/NZD SELL
If you look at the price bar that corresponds with the time frame we are looking at on the indicator which is the London open, price moved down 55 pips from this level.
When you watch the rest of my video analysis, you will see how we took advantage of another trade on the NY open but more importantly how we avoided a whipsaw loss that is very common among amateur traders.
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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