8/11 Analysis: Momentum & Timing
Right before the London session opens, we have a strong CHF (turquoise line) and a weak JPY (yellow line) but there is no current momentum in the market as both are trading flat at the moment.
However, if we fast forward several minutes into the session, you start seeing other patterns emerge:
Now, the EUR (pink line) has moved way up into strength but more importantly there is a steep line to the far right indicating huge momentum happening right now in the market.
On the downside, the USD which was initially strong is now steeply moving down very quickly.
- EUR/USD BUY
Even if you entered this trade at the very top of the price bar after seeing the momentum on our indicator, the pair still moved 35-36 pips up from there.
This is the importance of timing your entry with momentum.
You can watch the entire video analysis below to see 2 more profitable trade set ups from today:
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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