8/10 Analysis: Pending Order Protection
I want to point out a couple things today. First off, you see there isn’t much momentum in the market currently so we would be looking to place pending orders above/below the market price waiting for the trend to continue.
Also, up top you would think that the NZD (purple line) would be the strongest currency since it’s been the strongest for some time. However, it hasn’t been getting stronger. The EUR (pink line) is preferable because it’s been steadily creeping higher.
On the other side, the USD (blue line) would be paired against the EUR as it’s the weakest.
- EUR/USD BUY
So this is another case where the pending order prevents you from getting into a bad trade. On the NY open, trend reverses and heads down leaving your order not triggered.
Now, eventually price reverses and if you left that order in, you’d be in a small profit at this point. However, this is over two hours later and after about 30 minutes or so, I would have personally cancelled the order.
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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