8/20 Analysis: Perfect Breakout Trade
Prior to the London open, we have a CHF (turquoise line) that has been strengthening for some time and the AUD (orange line) that has been weakening.
However, there is no steep line to the far right indicting current momentum so all of the conditions we look for are not met to enter a market order.
We would look to enter a pending order 10 pips below the current price.
- AUD/CHF SELL
This is the power of using pending orders. Once London opens, the market goes sideways for almost an hour before continuing the trend down. Once it moves the 10 pips below the open price, your order would trigger.
From that point, price moved 32 pips in your favor. The nice thing is if the trend didn’t continue and went up, your order would never be triggered and you would protect your capital
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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