GDP

The US GDP is due out today and this may well prompt us for a direction in the GBPUSD and EURUSD pair. Wait for the news today before opening any position.

Hope you all have a good weekend and to my UK readers, I believe we should be having a hot couple of days so let's enjoy the sun before commencing our trading again next week.

Below is an email Kalam very kindly sent to me yesterday. Well done to you Kalam.


The Mechanical Trading system.

In 2005 i decided to take a trading course at the cost of £900! a lot of money in my books as i earned that every month from working 30 hours a week at The Carphone Warehouse, but where my student loan was coming through, i thaught why not.
The course had lots of information but nothing that i found useful to help me in actual trading. The best thing to come out off it all was meeting Javid.

this guy helped me in finding the best softwares and also generally motivavted me to become a trader and live the life style that he does. (watching Sky Sports news all day and travelling!)

starting any business needs investment of cash, and this i did not have a lot off. but i managed to get money together and start trading using different strategies. i used to make money but would loose it as fast.

when Javid showed me the mechanical trading system, i was astonished to see how simple it was and yet so profitable! An approach to trading that was non emotional and very very easy to do. i decided that this will be the main way that i trade.
i made almost £1000 profit on my first trade, which i took on the day i turned 21!

Javid i wouldn't be trading if it wasn't for you. you are an inspiration and have made my dream of a Range Rover Sport possible.

now if someone so young can do it anyone can, now that £900 is the best that i would ever had spent in my whole life.

Kalam

Euro Dollar

Chart courtesy of Advanced Get. Data provided by eSignal.

The Euro Dollar is at the previous all time high resistance. Watch for a reversal or breakout.

Good luck.

GBPAUD

Chart courtesy of Equis Metastock. Data provided by Quote Center.

The GBPAUD chart has been showing a sell signal for a while. Although I am already short this cross, there maybe a possibility to take another short position. At present a signal has not shown up to add to my already short trade but I will be looking out for one should we continue the downtrend.

Well done to Kalam for making just short of £1000 on GBPUSD using the Metastock RMO strategy on the 60 minute time frame.

Good luck for Thursday.

NZDUSD Resistance

Chart courtesy of Advanced Get. Data provided by eSignal.

I have been stopped out of yesterdays trades with a loss but have not analysed them today to give any further information on that. I have managed to acquire a cold (thanks Siegi) hence my late update today.

The chart above shows a weekly NZDUSD pair at the resistance level from 2005. Watch for either a breakout or a fail in momentum and a drop in price. Candles will provide possible clues here. We have some divergence on the weekly and mainly daily.

Good luck.

Pound Yen

Chart courtesy of Metastock. Data provided by Reuters Data Link.

Chart courtesy of Advanced Get. Data provided by eSignal.

We have two signals for shorting the GBPJPY. The Metastock chart is 60 minute and Advanced Get chart is daily.

One is through mechanical system trading and the other is through a personal strategy but both are giving the same result. The system trading used on Metastock gave us a later short signal than my personal strategy.

Systems and strategies aside, you may want to have a look at this cross for a possible trade but please do your own analysis before opening any position.

I have closed off my USDCAD position now and am awaiting the interest rate statement this afternoon before opening another position in this pair.

Good luck today.

System Trading

Over the last week I have been asked more and more about what mechanical trading systems I use and if I would divulge the logistics of the systems.

It seems in the last month or so there has been a huge increase in favour of system trading. I have been system trading for many years now but I think you should all be aware that at certain times your system should be turned off. No trading system be it mechanical or non mechanical will consistently work 100% of the time so knowing how to trade when you turn off your system is a must which is why using well tested strategies are essential to know.

For those who have asked last week regarding what mechanical trading I use, it would be very difficult to go in to detail on here but I may produce a video to go through that on this site in the near future.

I will update with analysis tomorrow.

Good luck this week.