July 13, 2015Daily Analysis

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.

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James Edward
James Edward has been a successful Forex hedge fund manager & educator for over a decade. He founded Complete Currency Trader, a London based firm that has consistently trained individuals to become professional and profitable traders long term using the individual currency strength analysis methodology. CCT is an elite Forex educational firm and has a reputation second to none with over 90 positive reviews and an overall 4.538 out of 5 rating on the third party verification site Forex Peace Army. James’s affable personality, expert knowledge, notoriety for getting results, and steadfast dedication to his clients, has secured his position as one of the most trustworthy, liked, and in demand authorities in the industry.