7/16 Analysis: Know Exactly When to Trade
This individual currency strength indicator is good for not only telling you when to get into a trade but just as importantly when to stay out of a trade.
Today at the London open, although we have a couple strong currencies up top and some weak currencies down below, they are all turning back the other way.
However, if we fast forward 15 minutes into the London session, you will see a nice pattern emerge:
Now, you can see the GBP (red line) is strong and steeply turning up which indicates current momentum in the market and the CAD (green line) which has been very weak all session is now turning steeply down. When you see these currencies diverging away from each other, it’s a good trade set up.
- GBP/CAD BUY
The price bar I’ve highlighted corresponds to the move we see on the indicator. Even if you entered at the close of that price bar, the pair went up 35 pips from that point. You can see that waiting for the pattern to emerge gives you very accurate timing.
You can 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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