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

Progress for the week

Good evening Dynamic Traders,

NFP normally is on the first Friday of each month but was on Thursday this month. It usually produces huge amounts of volatility and is therefore safer to stay out of the markets. Today's movement does not appear to be as great as it is usually.

Given that it is Friday tomorrow I have decided not to post any new set ups but to take a look at the ones I have posted recently to see how they have fared.

First up is the AUDNZD. Price tested the support line and bounced up some 300 pips. It is now testing a previously supporting trendline and has produced a doji. Will it be able to continue to go up to test the previous high or will it find resistance and succumb to the downward pressure?















The GBPCAD also found resistance produced a doji and a pullback. We will be on the lookout to see if price will continue down to retest the value index or indications of a continuation up.














The GBPUSD and EURJPY have not yet broken out so are still very much on the watchlist.

Wish you an awesome weekend.

Good Trading!
Bijal Shah

Awaiting breakouts

Dear Dynamic Traders,

Welcome to the start of another trading week. Hope you have had an outstanding weekend.

Today's pairs for review are the Cable and the EURJPY.

The daily chart for the Cable shows price having reached a resistance area (which is also a Fib breather level more apparent on the weekly chart) and then some level of sideways movement. The question is what next? The highlighted area shows the oscillation, ideally we want price to break up through the resistance so established trend may resume and simple filter employment will ensure entry into a trade.

Should price decide to reverse, it is less simple as additional confirmation would be required and it means trading contra trend until a trend is established.














The EURJPY is showing a recent pullback, with the VI acting as support and price is currently near a RN. There is nothing obvious to suggest a change in trend, we have been continuing to witness higher highs and higher lows although the approaching trend line/squeeze should be kept in mind . A entry may be sought at the break of a trend line on a slightly shorter time frame or at the break of a previous high.














Good Trading!
Bijal Shah

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Cable Squeeze

Dear Dynamic Traders,

Yet another day of large movements across many pairs. Well done to those of you dynamic traders who are making the most of the opportunities presented by the markets.

The Cable chart below has moved in excess of 400 pips today. Its been in consolidation for some time now. A squeeze formation is apparent and a slight breakout was witnessed today. Aggressive traders may already be triggered into a trade. Although a likely breakdown may be expected ("no one knows what is going to happen next"), further confluences including a BOB are required for my entry trading rules to be met.

Note high volatility news out tomorrow affecting this pair.













Fortunate Trading!
Bijal Shah

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Cable descent?

Howdy Dynamic Traders,

Below is the 4 hour Cable chart. Price reached the 1.44 mark and tested previous support which has now turned into resistance. However, it failed to break up and produced a reversal candle. If the pound does not muster up enough momentum, it may well resume its downtrend. MACD has been showing divergence for several candles now. Note other confluence of events highlighted on the chart.














Question 10
What don't I see?

I hope these questions bring you a step closer to get to your goals. Have an awesome weekend.
My next update will be on Tuesday evening.

Good trading!
Bijal Shah

Cable

Good Evening DT's,

The GBPCHF did a fake breakout yesterday and then proceeded south. This highlights the importance of employing the filters introduced by our mentors to help preserve trading capital.

The interest rate decision had a positive impact on the Cable moving it around 360 pips up. The Cable is a pair that I like to keep an eye on so here comes the analysis on it:

Strong support can be witnessed clearly on the weekly Cable chart. MACD has been making higher lows while price has been making lower lows thereby providing convergence.

A further breakdown with guidance from the daily chart shows that price has been range bound since the middle of November. Price has rallied over the last 4 days but is fast approaching the resistance zone. Price would have to break resistance for the swing trader to consider a longer term position. Will price continue up or will it head back down towards support? Some clue may be ascertained from the 4 hour chart.

What indicators are available to determine price action on the 4 hour chart?MACD is showing divergence; and more importantlyPrice is approaching a key Fib reversal level

So what's the verdict?
No one knows what is going to happen next, and you don't need to know in order to be a winning trader (Mark Douglas). Given the importance Fib plays, wait for the reversal signals to enter the trade. Conversely if resistance gets broken await the BOB and take what the market offers with ESLT and risk management.

Big news item day with NFP, GBP and CAD news.

Good Trading
Bijal Shah

Cable rules

Hello Dynamic Traders,

A warm welcome back to Saba, there is still a wanted order out on Jagir...

What an interesting Monday its turned out to be, hope you were able to take advantage of the opportunity the market provided today. I managed to scoop up just over 200 pips on the Cable breakout out of a phenominal 459 ish available pips and around 100 pips on the EURGBP.


I have posted the Cable chart again today because it looks interesting. Suddenly this pair looks bullish after many days of consolidation. It has hardly had any pullback on its way up. I have uploaded a 30 minute chart which shows a potential bullish flag formation. The pullback has not reached the usual Fib breather level before it decided to head north again. Keep in mind the S & R in addition to the 4 hour chart which shows a potentially different picture (123886). As always please do your own analysis, wait for the set up and then don't be afraid to receive what the market provides.


Tomorrow is the biggest day this week for news items including interest rates so please take this into account when trading particularly for the short term traders amongst yourselves.














Festive Trading
Bijal Shah


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Cable squeeze

Dear Dynamic Traders,

Welcome to week 51 of 2008. Hope you all had a fulfilling weekend.
Clayton has talked about the USDCHF and I am going to talk about the 2nd musketeer, the Cable.
The 240 chart posted below shows a squeeze formation. There is close proximity to a strong figure. Normally the pair works conversely to the USDCHF. Wait for a BOB and employ the filter technique to avoid a FB-O.














Good trading
Bijal Shah

"When I let go of what I am, I become what I might be."
Lao Tsu

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Brakes on the Cable

Good Day Dynamic Traders,

Hope you all had a fantastic weekend. There is only one (AUD) planned high impact news item today so may be a slow start to the week. The Swissy mentioned on Friday's post is still on the watchlist for a reversal on the short side.

Cable

The Cable weekly chart shows price at a key Fib reversal level and the figure is in sight. An aggressive trader may see this as a good opportunity with low risk to go long if the entry is timed appropriately with patience and the correct signals. However, be aware that this is trading against the trend.

The daily chart adds to the confluence of events by displaying MACD divergence. If you are in the trade, it should be managed carefully.


























Source: Advanced Get

CHF/JPY

The CHF/JPY daily chart provides an opportunity on a break out or break down. The figure is again prominent and price is at a key Fib reversal level (more apparent in the 240 timeframe)which highlights a move up is due. Review lower time frames and ensure confluence of events prior to entry.



























Source: Advanced Get

Happy, patient trading!

"We can't get back and make a new start,
but we can always restart and make a new end."
Ayrton Senna