Interesting change on the Kiwi

Morning Dynamic traders.

Yesterday the Kiwi definitely surprised me with a big change in price and direction. Yesterday morning we had what looked to be a healthy green candle. It closed only 5 pips away from where it opened. This is very interesting and surprising, and today we are now greeted with a bearish candle.

Why did this happen?

Yesterday I posted an hour chart, and I said that price was confused.

Below I have used an hour chart again to explain this change in direction.
You will see that we have divergence on the MACD along with a sell signal, a reversal candle and price hit previous support/resistant line.
These events aren’t as clear as this on larger time frames, which is why I used the hour chart.













For a long term trade yesterday’s events wouldn’t have proved to be very profitable. If you have a more short term approach to trading and prefer smaller time frames and read the signals, you wouldn’t have had a bad day.

This is my last post of the week, but on Monday I will update todays events on the NZDUSD and round off this week with a conclusion on how NZDUSD have behaved and then we can follow another pair.

Hope you have a good weekend.

Happy Trading.

Confusion on the Kiwi

Morning Dynamic Traders

Yesterday morning we were met with a green candle, when price was coming down. This candle closed green and we now have a healthier green candle today.

Why did the price decide to strengthen yesterday?

The hour chart below helps to explain this.

The first thing you might notice is since Tuesday the price has been Oscillating. This is showing that over the past 2 days, price doesn’t know what it wants to do. We also had numerous buy and sell signals from the Get Stoch, to help highlight the confusion.














Along with this on 2 larger time frames we have slight convergence on the MACD.

Tomorrow we will be able to find out if price has decided to continue to strengthen with the events of today.

Happy trading.

Yesterday’s Events

Morning Dynamic Traders.

Yesterday we had a big drop in price very early in the day. Today we are met with a green candle. This can still change to a red candle, but being in this trade, I would want to know why it’s green and is this the beginning of an up trend.

On the daily chart the signs we were given about the change was convergence from the MACD, and the RSI has shown a change indirection, but it is still in the under brought area.

When I looked at the hour chart it is very obvious to see a triple bottom. This could explain why price has strengthened, but it isn’t enough to confirm whether price will continue to drop or begin to climb.













This is a case of being patient, and wait and see where the price goes. What is happening in this chart especially the events of yesterday and what price is doing now, shows how important it is to manage trades when price starts to get a bit confused.

Look forward to updating you on todays events tomorrow.

Happy Trading

Kiwi still falling

Morning Dynamic Traders

The Kiwi has dropped a lot today already. I said yesterday that it would have been tricky to have made money from this down turn. Tricky yes, Impossibly no.

I think it is tricky for 2 reasons. First reason is we don’t have any obvious reversal patterns. But there were other signals indicating where the price might be going.

If you look at the RSI it is showing under brought and from Stochastics we have a sell signal.

By using these two indicators along with price hitting a previous resistance/support line at a RN, we would have known a change in direction was coming.















My second reason is where you enter the trade. This is tricky because it depends on what kind of trader you are. If you have a more aggressive approach and don’t mind too much exposure to risk, then entering on this trade might have worked, depending on how you managed your trade with stops.

Tomorrow we will be able to see how much more this has dropped, if it continues and we will see why it has happened, so that we can use the information for our next trades.

Happy Trading

Keeping an eye on the Kiwi

Morning Dynamic Traders.

I have decided this week to concentrate on one currency pairing, so that we can get an understanding of what happens to the price and why the changes are being made.

I have chosen to follow the kiwi so that we can see what happens following my update last week.
With a quick glance at the chart we can see that USDNZD is currently in a downtrend.

You can see on Monday last week the price hit a Resistance/Support at a RN and then took a turn and has dropped.

Making money from the drop in price might have been a bit tricky, but capitalising on profits from the increase in price from 0.5000 would have been far easier with convergence from the MACD.














It will be interesting to see what events happen today and what that does to our chart.

Happy trading.