Market Pulling Back - CADCHF No Exception!

Good afternoon ladies and gentlemen

I hope you all had a wonderful weekend. I realised that I am now torn between prefering the start of the weekend and the start of the week!! Am I on my own? How many people can actually say that??!! Thank god for Trading and not only that. All of us who have graduated from the Dynamic Trader Webinar apprentiship and are now subscribers to Trading Room will be even more excited than most! Happy Days.

So to the market and as we should know all too well by now is that the market never moves in a straight line. For every good move there is always a period of consolidation where the market corrects itself. The Bulls fighting the Bears. How long does this go on for? The simple answer is until the market decides to do a break out. In which direction? The simple answer is which ever direction the market feels like. Can we second guess the direction? Simply put - NO! The degrees of pullbacks can vary and it is an "uncomfortable" experience to see your profits just suddenly being wiped out. I am currently 50% down across all my trades since last week having also been stopped out of one of my trades at break even. It is during this time where the TP (if a trader has one) goes out the window for the dumb money but where us Smart Money stay disciplined and stick to our trading rules. We do know that we have the direction of the trend in our favour and more often that not the break out from this consolidation will go with our friend.

Looking at the EURCAD we are currently in such a phase. A quote from my mentor which sums up the situation is "The market pays dividends to those that are disciplined so now is the time to follow the rules and not allow emotions to take over. Make sure you focus on the management and not the money!" Some (a countable amount) may say he is not just a pretty face!!

Below is the daily chart and we can see that price has now retraced all the way back to restest the R turned S Line. If I had gone into this trade using the ESLT I would have been stopped out by now. Price did break through but has since been pushed back. It is now just a waiting game to see whether price will bounce back up over the next few days and create another SM entry point or will we see a further drop or even a reversal?




I will leave you to do your own analysis!

For those of you that "love gold" like Goldmember from Austin Powers, don't forget to read John's up date on our sister websites http://www.fxcps.co.uk/ and http://www.fxcps.com/.

The quote of the day is "Intent or thought without action is not enough!"

Total Abundance is our Birth Right

Zaheer Anwari