6/30 Analysis: Perfect Timing with Pending Orders
As we look at our indicator on the NY open, you can see the AUD (orange line) is strong up top and the EUR (pink line) and JPY (yellow line) are weak down below the zero line.
The way we would trade this is by placing pending orders 10 pips below or above current price because there is no current momentum showing in the market (no steepness on the far right of the currency lines).
If price continues in the direction of the current trend, then we enter with momentum on our side. If price reverses, we don’t get triggered and risk nothing. Let’s look at a potential trade from this morning’s session:
- EUR/AUD SELL
This is a good example of how pending orders can keep you out of bad trades. At the NY open, price reversed from the trend and went up so your pending sell order would never be triggered and you have nothing at risk.
As price eventually comes back down to continue in the original trend, your order is triggered and now you are in an unrealized profitable position that will hopefully continue.
Watch the entire video analysis to see how we approach the AUD/JPY buy in the same way:
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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