8/26 Analysis: 1 Bad Trade Avoided, 1 Profitable Trade (and some advanced analysis)…
At the London open, this is a good example where we see a strong currency (CHF) and a weak currency (AUD) but there is no current momentum. In this case, we can place a pending sell order 10 pips below the market.
- AUD/CHF SELL
This is why we use pending orders when there isn’t any current momentum in the market. Today, your order would not have been triggered so as the trend reverses up you would not have any capital at risk. In other words, it kept you out of a bad trade.
Next, I want to show you an example of a trade where our indicator is showing heavy momentum in the market. This is from the NY session:
Now you can see the steep lines to the far right indicating heavy momentum in the market. The CAD (green line) to the strong side and the EUR (pink line) to the weak side. This is a pattern where you should enter immediately using a market order.
- EUR/CAD SELL
So even if you would have entered at the very bottom of that price bar, the move went in your favor by over 40 pips.
I get asked a lot why I didn’t take certain trades or why we didn’t get into previous moves/trends that show on our indicator. When you watch the entire video analysis below, I’ll tell you why and show you some of my advanced analysis through my dashboard software:
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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