After the fireworks of the FOMC meeting and interest rate decision the previous day, it was no surprise to see markets absorbing the news and trading in congestion before devloping stronger trends later in the session. As Europe and London forex markets opened it was clear from the currency strength indicator on the faster timeframes, virtually every currency was moving sideways and with no firm direction, which reveals another aspect of the indicator.
Whilst we use it to identify reversals and strong trends, it is equally powerful in identifying those currencies which are moving sideways and therefore not ones to consider at present. The GBP/JPY was one such pair congesting around the volume point of control and highlighted on the currency strength indicator for MT5 and NinjaTrader.
Video length: 01:01:36
Disclaimer: Futures, stocks, and spot currency trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in ...
Disclaimer: Futures, stocks, and spot currency trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures, stocks, commodities and forex markets. Don't trade with money you can't afford to lose. This website is neither a solicitation nor an offer to Buy/Sell futures, stocks, commodities or forex. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this website. Past performance of indicators or methodology are not necessarily indicative of future results.
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