EURAUD Short

Dear Dynamic Traders,

Hope you all had a very merry Christmas. Below is a daily chart for the EURAUD. I am looking for a short entry if/when the price breaks previous support.













Good Trading!
Bijal Shah

Merry Christmas!

Good Day Dynamic Traders,

Hope you are all having a great week and have the Christmas arrangements all under control. The markets have been making some large moves this week.

The GBPCHF has been back up to retest the previous resistance/value index and come back down and produced some nice profits. A keen eye will be kept on this chart for further scaling in if price breaks the previous low and continues south with the trend.

Gold has been retracing and it has not quite hit the breather level yet which it may do before it resumes the trend. I am going to wait for further evidence of a possible bounce up before entering long.

I mentioned the ZAR a while back and a possible head and shoulders. Price has failed to break through what would have been the neckline and therefore the H & S is invalid. Price is considered to move sideways until is shows direction of some form.

AUDCHF and AUDCAD are ones I am keeping a close eye on over the next few trading days to see if they provide some opportunity to enter.

I would like to take this opportunity to thank Javid and Anne for their continued support, guidance and encouragement, without them my trading and development would not be where it is today. In addition I would like to thank you the readers for your kind words and feedback. Wish you all a very Merry Christmas and best wishes for a fantastic 2010.


Good Trading!
Bijal Shah

2009 trading draws to an end

Good Morning Dynamic Traders

Apologies for my irregular updates over the past week - I decided to stay out of the markets, so I didn't have any open trades to share with you. With the unusual moves of Santa season, combined with some consolidations, I felt it was best for my trading to take a well deserved break.

I'd like to take this opportunity to share some wise words from Mark Douglas:

"The best traders are in the 'now moment' because there's no stress. There's no stress because there's nothing at risk other than the amount of money they are willing to spend on the trade. They are not trying to be right or trying to avoid being wrong; neither are they trying to prove anything. They completely accept what the market is offering them, and they wait for the next edge."

"Try not to prejudge how long it will take before you can get through at least one sample size of trades, following your plan without deviation, distracting throughts, or hesitation to act. If you want to be a professional golfer, it wouldn't be unusual to dedicate yourself to hitting 10,000 or more golf balls until the precise combination of movements in your swing were so ingrained in your muscle memory that you no longer had to think about it consciously. Skill acquisition and practice will help you win. Learning to be a consistent winner as a trader isn't any different."

My learnings from 2009 have been invaluable. Trusting my edge tops it for me. When you see your account in negative territory your mind starts questioning your decision in taking the trade. But one must remain disciplined and see the trade through. Trading the plan is imperative. Another learning has been the importance of developing trading rules for my strategies and carrying out sample sizes. I have also discovered the importance of strengthening my trading odds through historial analysis, backtesting and larger timeframe analysis.

For me trading is not just about acquiring the appropriate skills, but more importantly having the right mind set, having confidence, discipline and a winning attitude.

I will be out of the country for a few week now, but planning to check in on the markets whilst away - January should be an interesting month! Whenever possible I will certainly do my updates. I wish you all a wonderful Christmas and a fantastic New Year. May 2010 bring peace, joy and of course successful trading to you all!

Sonia Molina

AUDCHF found resistance

Good Morning Dynamic Traders

I hope you're all enjoying your trading week. I've taken a bit of a back seat with trading this week due to the run up to Christmas. Not to say I haven't been keeping a watchful eye on certain pairs.

NZDCAD mentioned last week has attempted another retest of the H&S neckline. For the H&S to take shape it has to contend with the all powerful VI looming below - so anything could happen. However, for a potential reversal tradeI'm looking for a BOB of the VI.

EURNZD found resistance at the cluster above and retraced - we're back at the TL again. A BOB of the previous low and we may see a continuation with the downtrend.

Checking in on AUDCHF we can see price found it difficult to break the former resistance/9500 mark. So with the recent indecision candle, overbought ST and a bearish few days, we could have a DT situation on our hands. The trend is still up so my preference is a trade with the trend - but with the right strategy there could be some short term reversal profits to be taken - at the moment we're still in the range zone for the DD reversal strategy. For a longer term reversal trade, I'm looking for a BOB of the VI/Figure cluster.
















Successful trading!
Sonia Molina

GBPCHF update

Good Evening Dynamic Traders,

I posted the GBPCHF last Tuesday and price initially went down and then started to go up. Most of the time upon entering a trade or being triggered the profits don't always arrive instantly and it makes us question ourselves and doubt whether we should have gone in. One of the things I have learned is to persist, and follow my rules and discipline and not worry while the trade is still in negative territory.

Price is approaching several resistances so it may turn and come back down. Of course there is always a possibility that it will break through and the bulls will take over in which case I will get stopped out and that is all part of trading. If price does turn it will present an opportunity to enter.













Gold has produced some good profits for a few people I know. who took a very aggressive stance. I did not post on it yesterday as it produced a doji and the direction was still unclear. Whether price has definitely turned is anybody's guess but for the moment the signs are looking slightly bullish.

Good Trading!
Bijal Shah

AUDCHF

Afternoon Dynamic Traders

Just a quick update on the AUDCHF. As you can see from the chart below, yesterday's price hit the resistance level, sellers then got involved in the action and pulled price down. But then buyers fought back closing yesterday's candle with a long wick. Although the candle is a signal for indecision, buyers did in fact pull the price back up - strengthening the odds for a continuation with the uptrend. MACD is also showing good momentum. Of course we still need that all important confirmation - yes confluences suggest the trend may continue, but will buyers break the R level and continue the rally?
















Great trading!
Sonia Molina

Swissy update

Good Evening Dynamic Traders,

The Swissy is a chart that I have been in for some time this year and recently got stopped out due to tight management of my position.
Price has gone up out of the channel to retest previous support (now resistance) which also coincides with a RN. Today has produced a bearish bar and there are initial indicators of a possible continuation although not fully confirmed. I now await for the right opportunity to enter short.














Another interesting chart is Gold, has price found its support or will it continue with the pullback? Price has not quite got to the Fib breather level which also coincides with the TL so there is a possibility that it may continue further down. I will keep an eye on this chart and if I see anything more I will post on it tomorrow.


Good Trading!
Bijal Shah

AUDCHF

Good Afternoon Dynamic Traders

I hope you've all had a great weekend and are getting into the festive mood! I love this time of year - there's such a special energy in the air. A time for giving, reflecting and appreciating.

I have posted the AUDCHF chart today. Price is in a healthy uptrend and is now at a R level. The odds are in our favour for a long opportunity - ST's also positively confirms the uptrend. So my stance on this is to to trade with the trend either using MOBO or ESLT on a BOB of the high/R level. This may happen soon or price may continue to squeeze. Simply await confirmation from price and then choose the right strategy according to your TP and your trading style.














Great trading!
Sonia Molina

Mid week update

Good Evening Dynamic Traders

The EURNZD has had two very bearish days and the possible bullish flag I mentioned on Monday, in fact turned out to be a much deeper pullback - this may well be price trying to resume to it's trend. At the moment the bulls and bear are fairly equally divided in strength. Price is close approaching the figure once again which may slow it down. As mentioned, for a trend trading position, I'm looking for a bob of the extreme low. Still one to stand aside for now and wait patiently.

The NZDCAD has bounced up in the past couple of days, so nothing definitive on this pair as of yet.

Remember standing aside is also holding a position.

Great trading!
Sonia Molina

GBPCHF breather

Good Evening Dynamic Traders,

Hope you are having a good week. Gold is doing a pullback after a nice run up, as we all know nothing continues to go up in a straight line (big move, small pause, big move).

I have posted the GBPCHF chart below. I have taken an aggressive stance on this and entered short based on the trend, Fib breather levels, RN and candlestick formations. The more conservative trader will likely wait for a break of the low.














Good Trading!
Bijal Shah

NZDCAD update - reversal possibility

Morning Dynamic Traders

I mentioned this pair last week as we have the H&S chart pattern. Since then price has done a pullback and attempted a retest of the neckline. Price is at a critical point now. It's hugging the S/R line and seems to be deciding it's course of action. The intimidating VI is creeping up slowly and inevitably price will react one way or another once they meet. With the H&S, ST now forming a false bar at the bottom and other confluences mentioned last week, a possible reversal could take place.
















To enter on a reversal I'm awaiting a BOB of the VI and next support as this is likely to minimise the chances of any FBO's. Price could also fail the H&S pattern and return to it's uptrend. Patience and confirmation is what's needed now for either trade.

Great trading!
Sonia Molina

EURNZD

Afternoon Dynamic Traders

Welcome to a new trading week. Due to NFP on Friday we saw some volatile moves on the markets and I was stopped out on some of my MOBO trades. At times like this, it's important to remember that losses are inevitable and are a part of trading.

A pair I'm keeping an eye on is EURNZD. The trend trading opportunity is clear - a BOB of the low would suggest further weakness and I will be looking to enter a short should this happen. But with the current pullback we're having, a reversal could also be a possibility and we should always be prepared for whatever the marker offers.

We've seen a BOB of the 2 from the 123786 bottom, but price then almost tagged the VIR and retraced. Could this be a bullish flag forming, in preparation for further strength to the upside? Note the RSI strength. Or is this simply part of the current pullback? Either way, whether a continuation or reversal, a trade can be taken with the correct confluences and confirmations. I will keep you posted on this pair when a possible entry is lining up.
















Remain emotion free with your trading and remember that each trade is a unique opportunity and the past does not equal the now or the future.

Successful trading!
Sonia Molina

AUDJPY revisited

Good Morning Dynamic Traders

I last wrote about AUDJPY on 23 Nov. Price was testing the support TL for a fourth time and we had the possible 123786 formation. On the chart below we can see price broke the TL and also did a FBO at the VI support. Since then price has bounced back up - this may simply be a retest of the TL, it could be price trying to fight its way back to the comfort of its trend or even just part of a consolidation.

But remember we have the possible 123786 and some of you may have noticed the previous divergence also. So could we see price reversing? Of course, SM traders will be looking for a BOB of the VI at the very least before entering on a reversal trade. Check in on the weekly to gather some more insights. One to continue watching.
















As we have NFP due out tomorrow, my preference is to stay out of the markets during this time, so I will not be updating tomorrow. Have a great weekend.

Successful Trading!
Sonia Molina

Dow Jones

Good Evening Dynamic Traders,

Tonight's chart for review is the Dow Jones. Below are the weekly and daily charts.

The index has been in a recent trend up. Price is at the VI with some resistance and trendline support. MACD is showing divergence on both timeframes, on the daily chart long term and shorter term divergence is apparent. In addition, a Fib reversal level is not too far. Will price break through the resistances and continue up or will it retreat albeit temporarily until the buyers gain momentum?


























Good Trading!
Bijal Shah

EURNOK

Good Morning Dynamic Traders

I'm analysing the EURNOK today. It struck me as an interesting one to put on the watchlist for various reasons.

First the basics - the trend is currently down, confirmed with price being below the VI and the downward angle of the VI. Price looks to be a little on the volatile side, with some long wicked candles along the way, but with the right strategy and risk management in place this could be a trend worth riding. GETStochastics is also showing recent false bars at the bottom. So to trade with the trend, which is the SM approach, we'd be looking for a shorting opportunity.

We have two chart patterns in formation. A possible DT and also a triangle. The DT in a downtrend is a good sign for a continuation. The recent high almost tagged the VI resistance, which is clustered with a few other resistances. Take a look at the recent candles highlighted to uncover some more confluences. Now should a continuation down play out, we have the TL support below which is closely followed by a support line. My preference, for a more conservative trade, is to be patient and await a BOB of the squeeze, followed by a BOB of the next support.
















Gather your confluences and await a correct entry according to your trading style. Please carry out your own analysis.

Successful trading!
Sonia Molina