GBPAUD channelling

Morning Dynamic Traders

I hope you've all had an outstanding weekend and are ready for an even better week ahead!

Below is the daily GBPAUD. You can clearly see a channelling pattern price has formed, bouncing between a strong resistance and support line. As the trend is down, the odds favour a continuation south.

1. One confluence for a short is the tag of the R - well almost. There's always the chance that price will bounce up to test it properly.

2. But with the additional confluence being the recent tramtracks we have a good indication that price may weaken.

3. In addition to this we have the MACD divergence.

So we now have a nice collection of confluences for a short. ESLT could be used on the previous bar to the high for an aggressive entry. Of course the daily chart is in this current range and a more conservative entry would be a bob of the low.














Going to a lower TF could provide a better set up, so I'm also keeping an eye on the 4hr timeframe for entry. Price has recently broken the TL, but now I'm awaiting for a BOB of the VI before any action is taken. There is a S/R level close below so this should be taken into account for a safer trade.














My GBPCHF and USDCHF trades are in positive territory as of this morning. I'll keep you updated as the week progresses.

Great trading!
Sonia Molina

Become a bad trader

Good morning traders.

As our Dynamic Trader webinar attendees and mentoring students will know, it is easier to be a bad trader than it is to be a good one. Below I have listed some points that prove this.

1. A poorly set up portfolio
   
2. Use lots of leverage and no risk management
3. Join a trading club with friends and/or neighbours to make a decisions on a trade
4. Watch TV or read papers/magazines for trading tips
5. No proven strategy
6. No discipline
7. Lots of emotions before and during trades
8. Follow the herd mentality
   
9. After a winning streak arrogance and invincibility creeps in
10. No education

Above are just some principles bad traders beleive in without even realising it. To be good at anything takes time, dedication, hard work and of course enjoying what you do is an excellent leverage. Trading is no different and discipline to follow the rules is a big criteria for trading success.

The above 10 points is by no means an exhaustive list but just a guideline taken from my personal trading experience back when I began trading nearly 9 years ago. It is better to learn from someone elses mistakes than make the same mistakes on your own!

January was a good trading month and the last few days have been very good. Hope some of you managed to take the profits from the trades we mentioned on the emails and webinars.

Look forward to seeing the members on the Private Webinar.


Javid Shaik
Dynamic Trader

EURCAD & Cable breakdowns

Good Evening Dynamic Traders,

Hope you are enjoying your weekend - what's left of it!

Last couple of trading days have seen some massive moves in the markets. The Euro has done a beautiful one to one/flag formation (as mentioned last Sunday) and provided nice profits. What next? Current trend is down and there appears to be weakness so any trades contemplated with this pair should be only in a downward direction unless of course you are trading very short term.

The GBPUSD is looking interesting. It may have completed consolidating and is showing possible signs of a breakout, having closed below support as visible on the chart. Aggressive entries may have already triggered traders in or the conservative traders may wait for a retest after the breakout before entering just to make sure its not just a FO.













The EURCAD is another chart which is showing further breakdown through strong support. This pair has produced some nice profits already and is one where one might look to enter short or compound the position for further gain.














Good Trading!
Bijal Shah

Gold price drops

Morning Dynamic Traders

NFP is due out today and yesterday saw some irratic behaviour on the markets. Gold being one of them.

The Gold trade I was triggered in a few days ago has now been stopped out, as price plummeted. Since the US markets opened yesterday, price took a drastic decline (check 60 min chart). Fundamentals may have played its part, plus speculators are suggesting that the continued strength in the US Dollar has put pressue on Gold.














Now looking at technicals, what we have is price possibly trying to test the VI. This will be an interesting point for price - will it breakdown and continue to weaken, or will it use the VI as a trampoline to bounce up? Whatever the case, patience is key right now.

This trade was a good example of the markets just doing whatever it likes - fundamentals can always play it's part despite technical confluences being strong enough. At the time of placing my trade I was confident and conflict-free and knew exactly what my loss would be if the trade turned against me. So my learning on this trade is simply a reminder that trading is all about probabilities and losses are simply the cost of trading.

Now I will simply wait and watch to see what price will do next. I been triggered in the CHF and will update on this next week.

Have a great weekend.
Sonia Molina

Swissy

Afternoon Dynamic Traders

The Swissy was also on my watchlist, as mentioned in Bijal's blog. Since breaking the VI price has been staying close to it and yesterday's candle also tagged previous R as S, giving the SM trader an additional confluence to place a long trade. ST has formed another false bar on top so odds are stacking up nicely. ESLT on the recent high should provide an additional protective layer should there be any market remorse.














There is adequate breathing space for price as the next R cluster is at 1,1000, providing a healthy 400 pip opportunity. Stops shouldn't be too tight, as price has just broken above the VI so there's always the possibility of a bull-bear struggle at least until the bulls are running!

As always please carry out your own analysis. Remember, it's NFP tomorrow so markets may make some unusual moves.

Great trading!
Sonia Molina

Gold & GBPCHF triggered

Morning Dynamic Traders

Gold made a 24 point move up yesterday, producing a bullish bar at a support/fib reversal area. Stacking this up with the confluences mentioned in yesterdays blog, as well as ST now curling up, gave me more than enough confluences to enter aggressively on this trade. I have now been triggered using a pullback strategy and already in profits.

















Another trade I have been triggered into is GBPCHF. You can see we have a triple top possibility. VI is acting as R and the recent extreme candle is a doji which was also a head fake - since then price has been weakening. The recent market 'pre-shake' may have stopped out some traders if they had tight stops. Again I'm using an aggressive stance on this trade, as there are many confluences to support a continuation down. Of course the downside to this chart is that price is currently in a range, so I have to be prepared to be in this trade for some time if price decides to go sideways. My rationale is, so long as this trade can make a potential 1:1 RR.

















Of course with all trades there's the possibility it could go against you, as the market could do anything. This is why you must always have a pre-determined stop loss and an amount of capital you are prepared to lose.

Always carry out your own analysis and trade according to your own rules and trading personality.

Great trading!
Sonia Molina

GOLD - double bottom?

Good Afternoon Dynamic Traders

A new trading month, a new trading week and a new day of trading opportunities. For me January was a quiet month on the markets and I was stopped out of a few trades, so I'm starting February with a nice, clean trading slate.

Below is the Daily Gold chart. I was in this trade from early January for a continuation with the uptrend, but was stopped out in the recent pullback. Price is now at a support level (which was previous resistance) and we could have a double bottom formation. Of course it's too early to say, but we do have support clustered with a fib level, MACD convergence and not far below VI and TL acting as another layer of support. Higher TF's also suggest the trend continuing. On this daily chart, price is at an interesting point and the market inevitably needs to decide its path.

















I'm still favouring a trend continuation, so should the double bottom play out there could be a long opportunity to be taken. A suitable pullback strategy could be a good tool here. But should price continue weakening we could see Gold start to reverse. One to watch...

Here's to great trading!
Sonia Molina

EUR & Swissy

Dear Dynamic Traders,

Hope you are enjoying your weekend. The Euro has provided nice profits and is continuing with the flag pattern. That said, the weekly is showing price approaching the value index and a Fib breather level. This should be incorporated into your trade management as appropriate.















I mentioned the Swissy chart last week and a potential double top. Price has been dominated by the bulls and has not only broken through previous resistance but also the value index showing strength to the upside. If price has changed direction, and you are not in the trade, a pullback or retest of the resistance turned support may provide a good opportunity to enter.














Good Trading!
Bijal Shah

DKK continues up

Evening Dynamic Traders

Just a quick update from me on DKK. As mentioned on last weeks blog I was waiting for price to retest the recently broken VI and take advantage of the second wave. However price didn't retest the VI quite the way I would have liked.. it simply had a couple of low volume days and has now continued up.

Yes I could have entered and some aggressive traders out there may well have done so, but with the overall trend still being down and the chance of traders remorse I've decided to stay out of the trade until I see a decent breather in price, ideally tagging a fib breather level. Besides my R:R wouldn't have been good enough to enter as the R level looms at 5400 which could have stopped the trade in its tracks. So I've decided to hold off...still on the watchlist though.














Wishing you all a good evening.
Great trading!
Sonia Molina

SEK at resistance - double top?

Morning Dynamic Traders

The Swedish Krona is on my watchlist. My preference is a short trade as the trend is down (look back further on the daily chart). Having said that, I'm indifferent to which direction price goes, so long as the right set up is there for an entry.

At the moment price is contending with a strong resistance area, provided by a previous resistance level, the VI and RN. Odds suggest price may weaken at this point, which could give us a DT chart pattern as an additional confluence for a shorting opportunity. Entry could be taken on a BOB of the recent low, or of the TL.

The other scenario of course, is that price could break through this R cluster and joins the bulls for a price rally. Note the previous convergence (which may simply be relating to the recent bounce up). Should there be a break up and a reversal situation, I would like to see a BOB of the VI followed by a breather/retest before entering long.

















Have a fantastic day of trading. Keep it emotion free and always stick to your game plan. Great trading!
Sonia Molina

Double Top

Good Evening Dynamic Traders,

Hope you all had a good weekend.

Tonight's chart for discussion is the Swissy. I got stopped out of this pair a while back when it started to do a pullback to the upside. Price has since tested the 1.0500 area twice and is showing signs of retreating again potentially creating a double top (in a downtrend) if price continues down. The chart highlights further confluences which the SM will have ideintified.














Good Trading!
Bijal Shah

EURNZD bearish day

Hello Dynamic Traders

Hope you had a restful weekend and are all set for another trading week. I'm not in any new positions as of yet, as set ups are not quiet ready for me. I have EUR, DKK, EURNZD and SGD on my watchlist though - so it's a patience game. As they begin to show signals for a potential trade I'll post it on the blog.

The EURNZD daily chart is forming a bearish candle so far today (of course that could still change). That is coupled with a fib breather level and the major figure - and we're also in the midst of this R zone. The R cluster may be enough confluences for the aggressive trader, but I am looking for a BOB of the new low from 19 Jan for a continuation down.

















Being a dynamic trader is about knowing when to take the right opportunities when they present themselves (according to your own TP and rules), but also knowing when to step aside and wait as the markets decide what to do.

A great evening to you all and great trading!
Sonia Molina