Podcast:

In this video:

00:23  A lot of strength this week in the AUD and NZD

02:29  Really good high win rate and a 6.3% account gain this week

05:13  How I use the strength and weakness analysis

 

We’ve had some big trends this week and that’s led to some big profits.  Let me share more details with you right now.

Hi everybody, it’s Andrew Mitchem here, the Forex Trading Coach, today is Friday the 28th of March, welcome to my weekly video and podcast.  And this week we’ve had some fantastic trends.  

A lot of strength this week in the AUD and NZD

We’ve seen a lot of strength this week in predominantly the AUD and the NZD.  We’ve had a lot of weakness in the EUR, the CHF, and also the USD.  Now what this has led to is a lot of good trends that we’ve been able to trade in the same direction for a large part of the week.

Now, so far this week I’m up +6.3% on my account by risking just 0.5% risk per trade.  That’s a fantastic return following on from last week’s great return also.  The breakup of that is that on the daily charts I’m up +1.1%, on closed trades and on open trades I’m up +0.4% heading into Friday, on the four hourly charts I’m up a fantastic +4.8% so far this week, and I still have one trade open behind me on the AUD/CHF buying that and the trade is almost full profit, and I’ve taken one trade on the one hourly charts and that made me 0.4%.  And so really a decent return so far – that was two trades on the hourly charts with 0.4% net gain.  So a really decent return so far this week with +6.3% on closed trades and +0.4% on open trades.  

Really good high win rate and a +6.3% account gain this week

Like I mentioned, following on from last week’s great performance as well, you can see with just a few trades and with high probability and low risk per trade, how you can make some fantastic returns from this market.  Now of course the strong trends have certainly helped in terms of identifying which pairs to trade and in which direction, and so far this week for my clients I’ve identified thirty-one strength and weakness analysis pairs over the five days so far.  And out of those thirty-one suggestions, twenty-five of those have ended the next day in the anticipated direction and only six have not.  So just a really good high win rate there.

How I use the strength and weakness analysis

Now when I’m looking for strength and weakness, what I do is I go through the different charts looking for where I see as predominant strength or predominant weakness on the charts in anticipation of helping me trade the upcoming twenty-four hours, so the next day.  Now the great thing with that is gives me an idea and a bias of where different currency pairs are likely to be heading.  I’ll give you a great example; so far this week I’ve been looking at mostly weakness in the Euro, and for a couple of the days this week, I’ve seen strength in the GBP.  You put the two together and you see weakening in the EUR and strength in the GBP.  That tells you the likelihood is that the EUR/GBP currency pair is likely to be falling.  Now you go and look at your charts and have a look back at what’s happened this week and you’ll see that the EUR/GBP has fallen quite a lot.  So, by having the idea in the back of your mind that the EUR looks weak all round and the GBP pound is looking strong, that's telling me that the ideal scenario when trading the EUR/GBP, on any time frame, but especially the shorter time frame charts, like the four hourly charts, the one hour, or down to anything shorter, ideally I want to be looking for setups that are giving me short positions, because that has a higher probability of success in my opinion, because my longer time frame perspective,