USDJPY

Here is a second view of the chart. Please look below at todays first analysis of this pair.

Yen

The signal on the USDJPY yesterday should be qualified because of the strong uptrend we have had recently. Use your indicators or filter to get your confluence prior to taking a position on this. At the least wait for a break below the low.

Have a good weekend.

Euro Dollar

I have done a quick basic analysis on the Euro to perhaps aid us in identifying a possible direction. Notice a convergence and 50 fib support. I would add to that analysis a entry / stop loss technique before deciding to take a position on the pair.

I have scaled out on my AUSUSD short and locked in more profit by moving my stop down. I was stopped put for a small profit on the GBPUSD yesterday.

Good luck today.

Cable

Chart courtesy of Metastock. Data provided by Reuters.

FXTA shows plenty of weakness. I am short and have moved my stop to break even since yesterday after hitting the MOB. If you are not alreay short then wait for break of support levels before entering a trade on this one.

Good luck.

Turkey Catcher

I will update with a chart tomorrow if there is something worth looking at. I am short as of tomorrow on the AUD USD pair and have my stop now at break even.


Money management and the correct use of stops are key to profitable trading.
Money management is everything from, not putting your whole account on one trade to taking profits at the right time.
Putting too much on one trade can be a good way to loose a lot of money very fast, a general rule should be no more than about 3% of your account on any one trade.
You should also have targets and an exit plan weather it is to exit the whole position at a certain point or take part profits and use a trailing stop until the price turns and takes your position out. There are lots of methods for exiting you must find a system that works for you and stick to it.
Stops are invaluable in profitable trading and if you dont use them then you should start to.
It is suprising how many people out there still do not use stops as a general rule in there everyday trading. Dont you be one of them.
Stops prevent you from uncontrolable losses and are also very effective for locking in profit because the last thing you want to do is turn a winning trade into a loosing one!
If you cant control your losses you will struggle to keep any profits which will make you an emotional trader that makes rash decisions and no money.
My aim during a trade is to get my stop to break even as soon as sensibly possible. Not to early that the price has not enough room for normal fluctuations but soon enough to keep a profitable trade profitable.
You wont be right every time and every trader has losses but if you cut your losses quickly and let your profits run you will come out on top overall.
Happy trading.
Barrry.

Charting Software

A trading system is of no use without the tools to implement it.

Some people opt for cheap or even free software and feel this is an easy route to accomplish there goal.

I have used and bought may different packages as some of you know and I can tell you that cheap and free software is just that, cheap and free. In the world of trading good software is paramount and sidetracking this will only result in a lot of hard work, late nights and most probably end with trading emotionally.

Having rules and sticking to them will help immensely for any trader and the most successful traders will all have trading plans. I was speaking with Tom Joseph a few weeks ago and during our conversation I was amazed at how specific the rules he has are followed. Tom Joseph who is a world famous commodities trader for many years still follows exact rules and I would be suprized if he deviates from them at all.

There are hundreds of software packages available for trading ranging from free to a couple of thousand a month in cost. I use a few different software packages as no one particular software has all the features I like to use. I am asked quite often what is my favourite trading software. Well I dont have one single package I can say is the best but my main charting software packages are Advanced Get, Metastock and DT (all three you can see as links on the right hand side). All of them allow for mechanical trading thus removing a great deal of emotion and the way I trade, all three packages complement each other.

A friend of mine Rohan Weerasinghe always says, "When digging for gold, do not concern yourself with the cost of the shovel".

My next update will be on Tuesday.

Turkey Catcher

Sorry for the late update today. As we have missed the majority if today's movement, I thought I would place Turkey Catchers strategy on here for you.

Congratulations to you Barry for giving up chasing 400 turkeys a day.

This week so far I have made 127 pips profit using the mechanical trading stratagies.

I have my own set of entry rules that I filter the mechanical trading results through before I place my orders, they are very simple and include such as I only trade with the trend never against it. So if the stratagy is giving a sell signal I will only enter the trade if the trend is down. The same is true of long trades the trend must be up.

Everyday I search RMO and MACD stratagies for trading oppertunities. I pick out the securities that have been highlighted by both stratagies.

I then do further analysis on these securities, I am looking for increased momentum which indicates interest in the security.

I am looking for the trade being in the direction of the trend usually on a wave 3 or 5.
I then put the security through my TO stratagy to ensure that 3 out of the top 5 indicators are also in the same direction as my proposed trade.

This system has worked very well for me, it has protected me from false signals a number of times, increasing my percentage of winning trades and profitability.

Thankyou.
Barry.

GBPJPY

The GBPYEN is still looking bullish despite the sell arrow.

The trend is your friend so awaiting the continaution of the upward trend with a buy signal maybe a safer option as opposed to shorting just yet. If we stay above short term pivot levels then we are safe for a continuation. A break below then use fib to determine the supports.

Good luck.

EUR CAD

The EURCAD cross is in a downtrend but has found some support as you can see. XTL is still bearish but we do have some buyers bars. Further strength could see price reaching the next resistance line on the chart at 14600.

I spoke to our resident dentist Soodi this morning and unfortunately I cannot give him all your emails asking questions regarding the strategy as he wont have the time to answer them but what he has told me is when he was testing the strategy he started with a pot of £50 in the account and was trading 50p a pip which had then risen to over £600 with no losses. Now that is amazing but what I will say is no strategy is 100% consistently right and although it works extremely well there is a degree of luck involved for not having any losses so you should not expect the same results as our Dentist friend.

On another note, hoorah to Turkey Catcher who was on his way to work to hand in his resignation this morning. He decided catching turkeys is no longer his passion but trading is the way forward.

To answer a question from Peter of Melbourne, you are right I do know the traders of WT but I am sorry although I have the software I don't really need to use it and so cannot recommend it which is why I have not organized a discount with them and put a link on my website. However, the software packages I do use I do have links on my website for them and with good discounts.

On the topic of software packages, there is an abundance of software available for trading, some cheap, some very expensive, some good and a lot of them not so good. Tomorrow I will give my thoughts on trading software.

All the best for today guys.

Soodi & Bernanke

Good morning,

I have had numerous emails regarding Soodi's strategy that I showed on here yesterday. I will ask Soodi the questions on your behalf and hopefully he will give me all your answers.

I am not going to upload any charts today because I will not be opening any positions prior to Federal Reserve Chairman Bernanke comments this afternoon.

Have a good weekend.

Dentistry

Good morning people, I decided not to update the site with any analysis today.

Instead I have asked my good friend Soodi (who some of you may recall from previous posts as the Dentist who has made over 130k in less than a year of trading since I originally trained him) to share one of his strategies with you all. Below are the details of his strategy.

Thank you for sharing this Soodi.

Hi Javid

As discussed this is my strategy for day trading.

Firstly the reason i developed this was because when i was receiving arrow signals there were a number of false ones, so i thought about how i would take the true signals.

The points are:

1)using RMO strategy wait for a signal on 60m chart

2)using MACD strategy wait for a signal on 60m chart

both these signals have to be coincident and no longer than 1 hour apart

Before taking the trade i have to qualify the signals(this is for a SHORT,the opposite is true for a LONG) this is done by:

1)drawing the low of the signal candle on 5min and 15min chart

2)look for a close below the low

3)take a fib retracement from the previous high to the low of the candle that closed below the signal low

4)note the price at 23.6% and 38% this gives you entry price

Only take trade at this price once you have confirmed:

1)5/8 ema have crossed and moving in direction of trade on 15min

2)previous candles are walking the lower bollonger bands on 15min

3)stochastics is bearish on 15min and there is no divergence

4)macd is bearish with good angle and separation and there is no divergence

5)histogram is below waterline with no divergence

Once you are in a trade then manage it stay in trade moving stops to previous swing highs exit trade when either you have a coincident signal on 60min chart using RMO and MACD signal opposite to trade signal or when you have 5/8 ema cross opposite to entry direction

Use money management as normal

Soodi

USDCAD

Chart courtesy of eSignal's Advanced Get. Data provided by eSignal.

Hi all, we are back and ready to get back in to trading on a more swing basis after spending the last week and a half day trading.

If we look at the USDCAD chart above there maybe a bounce based on certain factors. Look for continued strength and watch the Ellipse.

Good luck today.

Euro Dollar

This is the weekly chart of EurUsd. For those that understand this chart you might want to take the appropriate action.

Congratulations to Barry (Turkey Catcher) for another extremely good trading week as per his voicemail left for me during the weekend. He has told me catching turkeys will be a thing of the past soon.

The next update will be June 12th.

Good luck.

Australian Dollar

The Australian USD pair has just produced a buy signal. Wait for a break above the high before entering on this should it continue upward.

We will be away for next week so will not be updating the website until June 12th.

Good luck for today and for next week.