June 12, 2015Daily Analysis

6/12 Analysis: Knowing which pairs have more profit potential

So at the London open we have 3 strong currencies well above the zero line and 3 weak currencies well below the zero line.

However, we only have 2 that meet our criteria for entry. The CHF (turquoise line) is strong and getting stronger with a steep line up indicating momentum. The NZD is weak and getting weaker with a steep line down.

The best trade option when only considering the indicator is the NZD/CHF but I know that that pair does not move in a very wide range so I’ll look for a better option.

The GBP (red line) is strong but hasn’t turned up yet with momentum. I would want to keep an eye on this currency because the GBP/NZD is a potentially more profitable opportunity.

If we wait just a couple minutes into the session, this is what the indicator looked like:

Now you can see the GBP is the strongest currency with a steep line up indicating momentum and the NZD remains weak with a steep line down.

  • GBP/NZD BUY

That move was over 100 pips. Now, compare that to the NZD/CHF sell:

061215 London Trade Result 2

So although this would have also been a profitable trade by knowing the pairs that give the better potential profit, you could have been involved in a move that was 3 times larger.

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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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.