July 29, 2015Daily Analysis

7/29 Analysis: Why Momentum Is Critical

Momentum is such a strong factor in determining which trades to initially take. At the London open, there are no currencies right now showing any current momentum in the market. These aren’t ideal conditions and you should show patience at this point by not entering any trades.

However, if we fast forward into the session a bit, we see this pattern developing on the indicator:

Now, we see the USD (blue line) heading back up and the NZD (purple line) getting weaker. This still isn’t enough to enter immediately but you certainly can keep an eye on these two currencies.

Fast forward a bit more and you see this:

072915 London Trade1Momentum

This is the kind of pattern we look for, see how the lines to the far right are steep (up in the case of the strong USD and down in the case of the weak NZD). This indicates the kind of momentum that allows you to jump right in with a market order.


072915 London TradeResult1

If you would have jumped in with a market order here, this move went down by about 30 pips. Now, this market has been pretty quiet all session but you can see how entering at just the right time and having the patience to wait out the right conditions will lead to profits while amateur traders are jumping in and out not knowing what’s going on and losing money.

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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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.