6/17 Analysis: Do You Analyze These Pairs?
At the London open, we have strength on the EUR (pink line) and the CHF (turquoise line) while there’s weakness on the AUD (orange line), NZD (purple line) and the CAD (green line) but they aren’t getting stronger or weaker at the moment (which tells us there isn’t any momentum).
You can do 2 things here:
- If you are trading the breakout strategy that I teach, there is nothing wrong with placing pending orders 10 pips above or below the current price in anticipation of the trend continuing.
- You can wait until you have clear confirmation of the trend with momentum.
If we fast forward a couple minutes into the session, we get that confirmation:
Now, we have a steep line on the CHF to the upside and steep lines to the downside on the NZD and CAD. This is indicating huge momentum happening right now in the market.
- CAD/CHF SELL
You can see that this pair moved down 60 pips from the opening price bar and would easily give you a 2 to 1 reward to risk ratio on your trade in about 20 minutes. You are profiting quickly while most amateur traders aren’t even looking at these pairs.
When you watch my video analysis, I’ll show you a similar result on the NZD/CHF SELL and show you what the market looked like for the “popular” pairs like the EUR/USD so you can see how amateurs blindly trade their favorite pairs as opposed to properly analyzing the entire market.
Watch the video analysis here:
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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