7/9 Analysis: Almost 100 Pips on EUR/JPY
When we do our initial analysis at the London open, we see the JPY (yellow line) is strong and starting to turn up and the CAD (green line) and NZD (purple line) are weak and starting to turn down.
These aren’t perfect set ups yet but you could certainly place pending stop orders above/below the current price so that if the current trend continues you will be triggered with momentum on your side and if not, you won’t even be entered into the trade.
However, if we fast forward a few seconds into the session, look at our indicator:
Look at how steep the lines are on the JPY and the EUR. This indicates a huge move in the market with momentum. They are also diverging away from each other so we would want to pair these 2 currencies.
- EUR/JPY SELL
From the time we saw this move on our indicator, price moved quickly down almost 100 pips.
Now, we are not suggesting you would have participated in all of that profit but even if you wanted to get a quick breakout profit of 20 pips right after the open, you would have done that very fast without any pullback whatsoever.
That’s the power of this type of strategy.
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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