8/31 Analysis: Big Moves Today
Prior to the NY session open, the market was completely flat with all currencies moving sideways.
However, 12 minutes in we see the EUR (pink line) is strong and turning up with momentum indicated by the steep line to the right. On the weak side, the NZD (purple line) is weak and turning down with momentum indicated by the steep line to the right.
- EUR/NZD BUY
The reason I’m showing an “Entry Zone” on the chart is because I want you to see how this would work in real time as you’re watching the indicator.
The first red line indicates the initial moment we saw the momentum on the indicator. The second red line represents when it became painfully obvious.
So I always like to use the worst case scenario and assume the entry was later.
From that point, price pulled back 10 pips so you would not have been stopped out with a stop loss of 20 pips. Then, from there it went up over 100 pips.
When you watch the entire video analysis below, I’ll show you 2 more big moves that you could have entered on early:
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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