6/4 Analysis: Waiting for clear moves pays off big
I have some good trades to show you today but this is another session where you had to show patience at the start. We didn’t get our first entry signals until 40 minutes after London opened.
Now, you can see the EUR (pink line) has crossed up above the zero line showing strength with a steep line up which shows current momentum. The NZD (purple line) has been weak and the steep line down indicates it’s getting weaker with current momentum to the downside.
This is a trade I took myself:
- EUR/NZD BUY
The initial move was over 100 pips very quickly and overall it’s at 124 pips right now.
You can see why it’s important to stay out of the market when it’s going sideways and wait for these clear signals with momentum.
Then, if we fast forward another 40 minutes, we get even clearer moves with huge momentum. Look at how steep these lines are:
You could have picked a number of trades here. I personally took the…
- USD/CHF SELL
The thing to notice with some of these trades is look how quickly the moves happen and how price doesn’t really pull back all that much. The key to catching moves like this is timing and our individual currency strength indicator tells you early on when momentum is present in the market so you can get in at precisely the right time.
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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