September 17, 2015Daily Analysis

9/17 Analysis: Multiple Trade Set Ups

Multiple Trade Set Ups

Today, we had some established trends before the London open including the EUR (pink line) on the upside and the AUD (orange line) on the downside.

But, trend reversed and these currencies started going the other way. About 11 minutes into the session, we see that the original trend continues and the EUR is moving up with a steep line to the right (indicating current momentum) and the AUD is moving down very steeply.

  • EUR/AUD BUY

I put the entry at the high of the price bar where we saw the momentum on the indicator as a worst case scenario. From that point, price went up about 70 pips.

When you watch the entire video analysis below, I’ll show you a few more profitable trade set ups from today’s session:

[00:00 – 06:10]

[slide]              [8 frenetic currencies on black]

                        Hello, I’m James Edward from CompleteCurrencyTrader.com. Welcome to today’s Currency Strength Analysis training video and on the screen you have the London Market opening from earlier today. So, if you do your initial analysis, you can see that the (pink) Euro (EUR) has been particularly strong and over the last hour and, moving down to weakness–there’s been quite a big move to weakness by the (lilac) New Zealand Dollar (NZD) and the (orange) Australian Dollar (AUD).

However, in this situation, you would not be trading because the (pink) Euro (EUR) is now moving very quickly back into the zero line and so is the (orange) Australian Dollar (AUD) and the (lilac) New Zealand Dollar (NZD). So, all the currencies–or all the strong currencies are turning back down to weakness and the weak currencies are turning back up to strength.

So, right now, immediately, at the Open, that is a no-trade situation. You wouldn’t enter the Market and you wouldn’t place pending orders, either, because there’s nothing to show you a continuation of that move. However, if you give the Market just a few minutes to develop and see how it unfolds, I’ll move this forward–

[slide]              [2nd view: further right, same chart, pink EUR skyrockets]

(continues) … this point, here, to this view, here, which is just 11 minutes into the Market Open, and you can see a big reversal in the trend. [points to (pink) Euro (EUR)] And you can see this big trend on these currencies, initially, before the Market opened and then things started reversing. You now have them turning back out again. So, the (pink) Euro (EUR) is beginning to turn up–that should catch your attention. And the (lilac) New Zealand Dollar (NZD) and the (orange) Australian Dollar (AUD) and, in fact, the (green) Canadian Dollar (CAD), are all moving back down to weakness.

Now, this is not necessarily a moment you would enter. You have a choice here: you can either place a pending order 10 pips away from where the price is right now and give the Market some time to prove that it is going to continue in that direction–or, what I would (personally) do, is to simply wait for a little bit longer to see how this develops, to see if the pattern gets any better.

If I move it forward, just a little bit–

[slide]              [3rd view: further right, same chart, pink / blue / yel up]

(continues) … further, to just 17 minutes into the Market, what you have now is better confirmation of the currencies that are continuing in that direction. So, moving up to strength, you have the (pink) Euro (EUR) that is moving up very nicely; you also have the (blue) Swiss Franc (CHD) moving up. And, then, down to weakness, what I particularly like here is the [drags pointer down orange AUD line far right] (orange) Australian Dollar (AUD) because of the steepness of that line.

Now, I’ve said this in all of the videos that I do. The steepness of the lines is the most important thing to look for over here, on the right-hand side of the indicator, because the steep of that line is the more indicative of that momentum in the Market. And it is the momentum that we are trying to take advantage of very early in the session. That is what is triggering our break-out trades and exactly what we’re relying on to carry our trades very quickly into profits.

The (orange) Australian Dollar’s (AUD) certainly the best of the weak currencies (here), [again drags pointer down orange AUD line far right] but you also have the (lilac) New Zealand Dollar (NZD), as well. So, what we actually have, is a situation (where the trends that were established before the London Market opened) did reverse, somewhat, and are now pushing back out again and are, actually, picking up with some momentum at this stage.

Let me go over to the price options, now, and show you the options. But, very quickly before I show you that, the options that I would see here would be trading the (pink) Euro (EUR) against the (orange) AUD or the (lilac) NZD. [I wouldn’t trade the (blue) Swiss Franc (CHD) against the (lilac) NZD because that is particularly hard pair to trade, because it doesn’t move very much throughout the day and it has an enormous spread. So that is one that I would (actually) avoid.] But I would trade this one (blue) Swiss Franc (CHD) against the (orange) AUD.

So, you have three pairs that you could choose between: AUD:EUR, AUD:CHD or EUR:NZD. So, let’s go over to see–

[slide]              [B&W vertical line EUR:NZD.MS]

(continues) … those three charts now.

This is the EUR:NZD. And this is the price bar. [points] Now, this price bar is what you would’ve [points to line a bit left of 1st] noticed–now, what I suppose I should show you here–

[slide]              [2nd view SAME chart, backed up to see earlier view left, EUR:NZD.MS]

(continues) … is this is the big trend that was happening before the London Market Open. [points 2 lines right] This is the reversal that we saw on the indicator. [draws pointer up / down next 8 lines right] And this is how the market started moving again. Now, you would’ve first seen this on the indicator as a [points to 1st bar right] valid signal on this price bar, so you could’ve entered on this price bar. Or, more realistically, I would’ve preferred you waited until this [points to next bar right] one, which coincides–

 

[slide]              [back to 3rd view currencies with pink / blue / yellow up]

(continues) … with this particular pattern on the indicator right now.–

 

[slide]              [prior 2nd view EUR:NZD.MS]

(continues) … So, from this moment, assuming you’d entered near the top of this price bar [draws diagonal down 3 bars right from cross point] it did reverse again. The price didn’t shoot off immediately, but not far off enough to stop you–out about 17, 18 pips. [draws same diag line up to 1st high bar, labeled “13 / 564 1.78626″] But, then, it’s gone up nicely, 60 pip[s], so you would’ve gotten your 20 pips on the EUR:NZD.

You could’ve–

 

[slide]              [B&W vertical line EUR:NZD.MS]

(continues) … also traded the AUD against the Swiss Franc (CHF). This was the trend that was happening before the Market opened. [points to 10th bar from left] This is the pull [points to 3 to right] back that happened just before the Market opened and this is the continuation [points to 2 more right] of that move. And this is the price bar that coincides with that [points to 1 more right] pattern on the indicator, so, let’s say a worst-case scenario now: you entered at the bottom [creates cross point] of that price bar. [draws diag line down to deepest point rt] You can see, again, the price has pushed down 37 pips, and that would’ve also given you a very, quick and easy, 20-pip profit.

And, then, the final option that–

 

[slide]              [B&W vertical line EUR:AUD.MS]

(continues) … you had available to you that you could’ve picked was the (pink) Euro (EUR) against the (orange) Australian Dollar (AUD). And, again, [points to 4th bar up post-flattish part left] this was the trend that was happening before the Market had [points to top 4th bar] opened and this is that quite-strong [drags pointer down over next 3-4 bars rt] pull back that you saw and then this is the continuation [draws pointer up climb rt] that would’ve triggered your entry.

This is the price bar [points 1st bar of that climb] that would’ve first caught your attention with that first area that I stopped on the indicator. But, more realistically, this [points next bar rt] is the price bar that you would’ve waited for the extra confirmation and got[ten] involved when you were certain this was a stronger move. So, [creates new cross point on confirmation bar] again, let’s go for a worst-case scenario and say you’d gotten in at the top of that price bar. [draws diag line up to highest bar top rt] From there, it has moved up almost 70 pips, 69  in total. So, again, another one that would’ve given you a quick and easy 20-pip break-out trade.

 

[slide]              [back to 3rd view currencies with pink / blue / yellow up]

(continues) … So, out of that, [points generally about stronger currencies] in the morning, you had the option (which should’ve been quite obvious to you) looking at the currencies and which ones to pick, any of those three that you’d have chosen would’ve resulted in a profit this morning.

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.

 

On a side note, if you’re in the real estate investment market, make sure you visit our friends at Aztec Financial Services!

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James Edward
James Edward has been a successful Forex hedge fund manager & educator for over a decade. He founded Complete Currency Trader, a London based firm that has consistently trained individuals to become professional and profitable traders long term using the individual currency strength analysis methodology. CCT is an elite Forex educational firm and has a reputation second to none with over 90 positive reviews and an overall 4.538 out of 5 rating on the third party verification site Forex Peace Army. James’s affable personality, expert knowledge, notoriety for getting results, and steadfast dedication to his clients, has secured his position as one of the most trustworthy, liked, and in demand authorities in the industry.