6/2 Analysis: Catching big moves early
You can see here at the NY open, the market conditions are not favorable because strong currencies are not trending up with momentum and weak currencies are not trending down with momentum. The reason why we want steep lines on the far right is because that indicates momentum happening RIGHT NOW in the market. This is where you sit out and do nothing.
If we fast forward this session, let me show market conditions that you should take note of…
You can see the EUR (pink line) is the strongest currency by far with a steep line going up (indicating huge momentum) while the USD (blue line) is weak with a steep line going down.
- EUR/USD BUY
This resulted in a big move up of over 140 pips. I’m not suggesting you would capture all of this profit but the point is by using this tool and being able to see the whole market and what’s going on in real time, you will identify these types of moves way earlier than most 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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