7/13 Analysis: Stay Out On News
When we do our initial analysis at the London open, you will notice the EUR (pink line) is clearly the strongest currency and the JPY (yellow line) is clearly the weakest.
However, they aren’t continuing in that trend right now so you would be placing pending orders looking for a breakout if price continued in that direction.
But, let’s look at the price chart to see what’s going on.
That big move up is what we saw on the indicator BEFORE the London open. That was a gain of over 140 pips. When the market opens, however, price moves down 70 pips and then whipsaws back up 70 pips.
The reason for this price action is due to European news. This is why I suggest looking at a news calendar on a site like Forex Factory, knowing when major news is coming out and avoiding the market during those times. The volatility is too high.
Protecting your capital is one of the most critical things professional traders do that most amateurs do not. Today was just not worth the risk.
Watch the entire 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.
Share this article
Learn to Trade from Top Traders
Join the CCT community and get FREE, unlimited access to all of our trading resources from top hedge fund managers and pro Forex traders around the world.Join Now