September 22, 2015 Daily Analysis

9/22 Analysis: +133 Pips On Perfect Trade Set Up

+133 Pips On Perfect Trade Set Up

At the London open, there were strong and weak currencies but none had any current momentum.

However, just 2 minutes into the session, we see this pattern emerge.

The GBP (red line) is weak and spiking down which indicates huge momentum happening in the market and the JPY (yellow line) is strong and spiking up, again indicating current momentum.

The steeper these lines are, the more momentum is in the market.


Even if you were slow to recognize the pattern and entered at the very worst possible time during this price bar, it pulled back some but not enough to stop you out and then went down 80 pips.

The trend actually continued further going over 133 pips in total today on this move.

Watch the entire video analysis below:

[00:00 – 05:54]


[slide]              [8 wide margin currencies on black]

                        Hello, I’m James Edward from Welcome to today’s Currency Strength Analysis training video and today I’ve got an example of a very good break-out trade that shows you how obvious the pattern is that you would ideally be looking for when you see this indicator.

So, this is what the indicator looked like [points generally all over] at the London Market Open earlier today. So, if you do you initial analysis, you’ll see that none of these currencies are really moving. So, you have weak currencies that are below the zero line and strong currencies that are above the zero line, but if you look carefully at them you can see that they’re not actually continuing in the direction of their trend.

So, the (pink) Euro (EUR) down here for example, for the last 30 minutes have been going completely sideways. That is not a trending currency; it’s not continuing to get weaker. The same thing with these currencies up [indicates each] here–the (lilac) NZD, the (yellow) Japanese Yen (JPY) here. The market, in general, is just going sideways. It’s very flat. There’s not a lot of activity. There’s no trends happening.

So, at this particular moment as the London Market opened, you wouldn’t be trading. You wouldn’t be placing pending orders and you wouldn’t be placing Market orders. So, in this current situation, you should just sit tight and allow the Market to get started and just see how it develops and see if anything jumps off the dashboard.

If I–


[slide]              [2nd view: further right, same indicator, blue dips then back up]

(continues) … fast forward this through two minutes–and this is exactly two minutes after the London Open, what you should now see is the (red) British Pound (GBP) is starting to spike down to weakness and the (yellow) Japanese Yen (JPY) is starting to spike up to strength. And it’s always over here [points far right] on the right-hand side of the indicator where we are looking for the new movement in currencies.

And what we have here is two currencies diverging, very rapidly, away from each other and beginning to get very steep. And the steeper these lines are, the more momentum there is in the Market. So this is a fast move, just getting started.

Now, this wouldn’t necessarily be an entry for you right now, depending on what your skill level is and how experienced you are at reading this indicator and understanding what the moves relate to, in terms of what’s happening on different price charts. But this is certainly something that should grab your attention and should catch your eye. And you should be watching this very, very closely, anticipating a potential trade on the Pound / Yen, seeing how this develops a little bit further.


[slide]              [3rd view: 1 min right, blue / yel /orange up]

(continues) … And, if I just jump this forward by an extra minute, so this is three minutes after the London Market has opened, what you now have is a confirmation of how far the (red) British Pound (GBP) has spiked down to weakness and how far the (yellow) Japanese Yen (JPY) has spiked up to strength.

So, that, now, [indicates spread] should be very, very obvious that these two currencies are moving rapidly in opposite directions. So there is a serious imbalance between supply and demand for each of these currencies. The (red) British Pound (GBP) is weakening rapidly with a lot of momentum behind it and the (yellow) Japanese Yen (JPY) is strengthening very rapidly with a lot of momentum behind that.

So that is the ideal situation that you are looking for. There’s nothing ambiguous about that; they’re not gradually trending up or down. They are moving rapidly and that is, precisely, the kind of thing that you are trying to take advantage of with this simple, break-out trade. You are trying to take advantage of the early morning momentum when a new financial center opens and there is that flurry of new-order activity which, very often, creates a spike in price like this. And those are the conditions that you are, ideally, looking to exploit, using this break-out strategy.


[slide]              [B&W vertical line GBPJPY.MS]

(continues) … So, if I go over to the price chart now, this is the Pound / Yen on the five-minute charts and this large price bar (here) [points longest near ctr bar] is the London Market Open. So, on this chart, in packages, it’s 7 A.M. GMT (8 A.M. British summertime, which is the London Market Open).

You can see [creates cross pt] from the Open [diag line near vertical same spot]that price has spiked down in five minutes, almost 40 pips, that’s a 38-pip move within the first five minutes of London opening. You could’ve gotten involved in this anywhere in the lower half of this price [points same 1] bar, realistically, at the two or three-minute point which relates to–


[slide]              [previous 3rd view indicator: 1 min right, blue / yel /orange up]

(continues) … the pattern indicator, here. Remember, this is the three-minute point and this–


[slide]              [previous 2nd view: further right, same indicator, blue dips then back up]

(continues) … is the two-minute point. So–


[slide]              [B&W vertical line GBPJPY.MS]

(continues) … that corresponds to the lower half of this [same long bar] price bar.

We can work on a worst-case scenario here [creates cross pt] and say that you got in right at the last possible moment at the bottom of that price bar. [diag line up 3 bars] There was a bit of a pull back, but not enough to stop you out with your 20-pip stop-loss. And, then, after that, the price has just continued [diag down past 2 add’l long bars to 1st bar past] trending for the rest of the morning. I mean, we have 80 pips down to that low point, there. [extends diag to bttm pt] It’s even gone further, to 133 pips–


[slide]              [#2 view B&W Price Bar: GBPJPY.MS, further right]

(continues) … there–


[slide]              [#3 view B&W Price Bar: GBPJPY.MS, even  further right, zoomed out]

(continues) … and, actually, that trend, if I zoom out on this chart, has continued all day. [recreates cross pt on 1st long bar] You can see, from the moment that first momentum happened in the London [diag to lowest pt] Market, the price has moved over 200 pips over the course of the day on the Pound / Yen. So, you would’ve, very easily, got[ten] your 20-pip take-profit target–


[slide]              [previous 2nd view: further right, same indicator, blue dips then back up]

(continues) … on that break-out trade right at the start of the London Open.

And, what I hope [points generally over strong currencies, rt] that is showing you is the ideal situation you are looking for and should be patient enough to wait for.

If you don’t understand currency trading strengths and weaknesses, just yet; if you’re new to the concept of trading individual currencies like this, then the Rule of Thumb you should use is just to be very patient and wait for these perfect setups–


[slide]              [previous 3rd view indicator: 1 min right, blue / yel /orange up]

(continues) … where the two currencies that you should be trading are very obvious and are jumping off this indicator [points yellow / red] at you. You don’t need to do very much thinking. That’s the point of this introductory system and using that break-out strategy is very simple and easy for you to understand, once you get familiar with the ideal situation, which is what we have a very good example of here, today.






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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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.