7/30 Analysis: Power of the Pending Order
At the London open, you can see that all the currencies are more or less heading sideways and have been for the past 30 minutes or so.
You have two choices during these market conditions, you can either walk away and not trade OR you can identify the strongest currency, match it up against the weakest currency and place a pending order. That way, if the trend continues with momentum, your order would be triggered. If not, your order won’t be triggered and you’d have nothing at risk.
If you look at the indicator, you’ll see the GBP (red line) is the strongest currency and the AUD (orange line) is the weakest currency. Since again, there is no current momentum in the market and these currencies are flat at the moment, you would place a pending stop order on this pair.
- GBP/AUD BUY
The pending order worked perfectly because price initially dropped as the London session begins but your stop order would not be triggered at this point.
Once price starts moving back up with momentum, your pending buy order is triggered and the pair moves about 45 pips in your favor from there giving you quick and easy profits for the day.
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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