Today, I’m going to show you why timing is so critical to your trading success. A couple minutes into the London open, the NZD (purple line) which has been strong all day is now moving steeply up indicating current momentum in the market. The GBP (red line) which has been weak for some time has a steep line down also indicating momentum.
This is exactly what we look for.
BUT…only 60 seconds later, this is our indicator…
Now, the NZD and GBP are very steep which means there is a ton of momentum happening right now in the market. If we look at the price chart, we see this…
So the 2nd red line indicates when it was real obvious on our indicator that this move was happening. It’s the 2nd screenshot from above. From here, price went down 20 pips. If you consider the spread, you probably would not have hit your 20 pip profit target and this would be a losing trade.
However, if you would have entered even half way down this price bar when we first identified the move, the pair went down 30 pips from that point and it would have been a winning trade.
The difference? TIMING.
Watch the entire video analysis below: