7/28 Analysis: No Trade, No Risk
When we do our initial analysis at the London open, the strongest currency is clearly the AUD (orange line) and the clear weak currency is the EUR (pink line).
However, we don’t have steep lines currently which means there is no momentum in the market. So you would want to place a pending stop order 10 pips below the current price.
- SELL EUR/AUD
What happened today is on the London open, the trend reversed and the EUR got stronger while the AUD got weaker.
So, your order would never have been triggered. This is a good example where you didn’t take any profits but you also protected your account and didn’t lose any money either. This is an inevitable part of trading and professional traders protect their capital first.
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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