6/25 Analysis: 2 trades, 1 trigger
At the London open, the GBP is the strongest currency but we aren’t seeing a steep line to the far right indicating there is no current momentum in the market to the upside.
The NZD and CHF are weak but again there are no steep lines to the far right indicating there is no current momentum in the market to the downside on these currencies.
What you can do then is place a pending order 10 pips above or below the current price and wait for the market move. If your order is triggered, then you have entered going in the direction of the current trend and if not, then you walk away with nothing risked as the market reverses away from your pending order.
- GBP/NZD BUY
- GBP/CHF BUY
So if we had pending buy orders on these 2 pairs, the GBP/CHF would not have been triggered since the CHF reversed. The GBP/NZD would have been triggered as the GBP continued getting stronger and the NZD continued getting weaker. This again is why it’s so important to be analyzing individual currencies and NOT pairs.
If you would have placed your order 10 pips above the open price, it would have been triggered in the direction of the trend and momentum for a 33 pip move.
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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