8/18 Analysis: Timing the Momentum
Just prior to the London open, you can see all currencies moving sideways. That means there is no momentum in the market currently.
But, you can identify that the CHF (turquoise line) up top is the strongest and the AUD (orange line) down below is the weakest.
If we fast forward a few minutes, we see this:
The EUR & CHF have both turned up indicating current momentum in the market and the AUD has turned sharply down.
You can see at the London open, price did go sideways as we first saw on the indicator. But then, we get that big move up on 1 price bar. I’ve marked where you could have entered when the momentum showed up on the indicator. From that point, price went in your favor 25 pips.
Timing the momentum is key to getting into high probability, low risk trade set ups.
When you watch the entire video analysis below, I’ll show you how to protect against a full loss on a trade that didn’t hit the profit target:
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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