Loonie still fighting

Good Morning Dynamic Traders

Hope you all had a good week!!

The Loonie is still fighting and suffered a big drop yesterday, but is seems to be making a strong effort to challenge the resistant line again.
You will notice in the 4hr chart below that when price suffered the big drop yesterday it found comfort at a fib breather, we then had a doji and then price started to climb slowly.













It will be interesting to see if price fails at the S/R line again. The RN that sits just above the S/R line really isn’t helping matters proving this area is key support and resistance. All we can do now is get ready for what action price decides to take!

Happy Trading

Richard Monnery

GBPJPY - She kept on going but has she had enough?

Good evening ladies and gentlemen

I hope you all had a prosperous day in the market, whether it be financial or that your technical analysis has taken a step forward.

So to the GBPJPY. Yesterday we left her in a very interesting position on the 4 hr chart where price was reapproaching a fib breather level. Certain indicators were saying that price was likely to continue and they were not wrong. Price shot staright through to a R turned S zone and since then produced a bullish engulfing candle and reversed. on the 1 hr chart, what confluences can we see that could have warned us that a reversal may be on the cards?

Price moved around a whopping 500 pips in 3 days so with all big moves there is usually a period of consolidation before a further move in that direction. The daily is showing a bullish candle. So given that, what are we witnessing unravelling before us?

On the 4 hr price is at the VI and MACD is doing lower lows with a cross over of the midline looking a possibility. Stochastics is also looking interesting with the signal lines crossing over and OS. RSI is heading up but not yet crossed over the midline. What are the same indicators saying on the 1 hr chart? If we are seeing a retracement where will it go to? I will leave it to you to determine what may (not will!!) happen next! We will look at the 1 hour chart tomorrow to check if our analysis was correct!




Alright Rich. Hope you are well my good man! I had a feeling my answer was wrong. OK so the film is The Rock. Again I haven't seen it but apparently it has a nice Ferarri!

My riddle for tonight is what's my favourite alcoholic drink? A glass of red wine or a snake bite?

Till tomorrow

Abundance is your Birth Right

Zaheer Anwari

Loonie having some trouble!!

Good Morning Dynamic Traders,

A much better start to the day with the sunshine, convertible weather again today!

Yesterday I mentioned that price could reverse due to certain formations forming. As you can see in the 4 hour chart below price did indeed reverse and started to climb, but it has stumbled across some resistance which holding price down.














This doesn’t mean we give up!! We now have to be patient as price could be taking a breather before it powers through the S/R line. To find out if this is the case we will need to wait and be ready.
I’m still waiting to be triggered into a trade by using the ESLT. Are you??

Happy Trading

Richard Monnery

GBPJPY - She has kept on going!! But (again) for how long?

Good evening ladies and gentlemen

I hope you all had a wonderful day in the markets.

This update is going up a little earlier than usual as I have an appointment to attend. So on our watch list for the week is the GBPJPY and yesterday we were left pondering how much further price would drop. We had a conservative fib breather and the VI standing in the way on the 4 hr chart. Price continued as we anticipated and even broke through the VI but then found support at a more aggressive fib breather level (which is also in close proximity to a R Line) before reversing and doing a long wicked doji. At the time of writing this price had made another surge south so we may see even further moves. Nice!!

So what does this all hold for the future? I can't tell you but as SM we can use our technical know how to anticipate best and act accordingly. At the moment MACD is starting to make higher lows but stochastics is now oversold but the signal lines have yet to tell us anything significant.

If you are a regular reader of our sister blogs you will also have seen an update by Jedi Master SJ on the same currency pair. The trendline was broken which would have provided healthy pofits for the semi-aggressive swing trader amongst us using wonderful the ESLT.




So once again the question has to be asked "What's going to happen next?" If these obstacles are broken, there is an open road to the next round number!!! I will, as always, leave it to you to do your own analysis. We will catch up with it all again tomorrow.

Alright Rich. Spot on man! The answer is indeed the letter M! I think the answer to your riddle is Transformers.

My riddle is "What is your best friend when trading?"

Till tomorrow

Abundance is Your Birth Right

Zaheer Anwari

Loonie, Could you be Reversing???

Good Morning Dynamic Traders,

My apologies for the delay in my update!!

Zaheer I totally agree with you mate, great minds do think alike, haha!!
I’m glad I stuck with the Loonie this week, because we may have reversal on our hands, which could mean......that’s right......easy profits.

If you take a look at the 4 hour chart below you will see that we have a 123 bottom or a Head and Shoulder formation forming. If we do this could very exciting as we need to be prepared to catch those profits.
I personally will need more signals before I can be triggered into a trade, as I don’t want to make a dumb money move. What else do we have to help us make a decision?
MACD convergence is there and has been present for a while.
The RSI is starting to show signs strength.
Stochastics are also trying to get involved on the action.
We also have the MACD convergence on the day chart as well!! What also adds strength to this theory is the fact that the reversal would be happening at the RN where we also have a strong support line.
We now have our confluence of events!!















How to act now depends you and what kind of trader you are? My advice is to make sure you perform your own analysis and act on it!

Happy Trading

Richard Monnery

GBPJPY - Will she keep on going?

Good evening ladies and gentlemen

I hope you all had a wonderful day in the market and I completely agree with my fellow blogger's comments this morning about the mood and the weather. What ever you put out there you attract so any negativity will attract negativity. With trading, come rain or shine, your vibes should be positive but your appraoch should be mechanical. This will give you the best chance of continual success in the market. Nice one Rich!

And Rich we must be on the same wavelength as I had decided to stay with the same currency pair too for this week! Great minds think alike hey!! So regular readers will know that my choice for the week is the GBPJPY. Yesterday we saw a huge move south at the tune of around 350 pips. Seeing as we had been waiting and anticipating this move from last week, as SM we deserved the fruits of our "SMART" earned labour! So give yourselves all a pat on the back, scream, shout, do what you have to do but at the start of play this morning that calm mechanical approach should have reappeared!!

So the question I asked you was what wil happen next and after such a big move yesterday we should have probably expected to find price stabilising. And that is exactly what happened today with price oscillating between 146.40 and 149.50. Price is now heading back towards 146.40 which, on the 4 hr chart is a conservative fib breather level! Will we see another bounce off this breather or will price smash through? For the eagle eyed, there is a reversal candlestick pattern that may suggest a further move down! In terms of the VI, price has smashed through it on the 1 hr but on the 4 hr may hold strong and act as a support if price continues in the current direction!!




What are the other indicators saying?! As always, I will leave you to do your own analysis to determine what will happen next.

Spot on with your answer Rich. I am well impressed. I am a huge Manga fan and that is an all time classic. The answer was indeed Akira.

Oih mate! Where my riddle at? Hmmmmm....

My riddle for today is "What comes once in a month, twice in a millenium but never in a hundred years?"

Till Tomorrow

Abundance is your Birth Right

Zaheer Anwari

Has it reversed??

Good Morning Dynamic Traders,

Slight dull start to the day, but that doesn’t mean our trading has to start in the same fashion.

I was going to move on to another currency this week, but I have decided to stay with the CAD for another week.
In the 4 hour chart below you can see that on Monday price did reverse and started to climb, and it climbed fairly quickly. This morning however price has slowed dramatically and looks to be dropping, what’s going on? It’s time to take a butcher’s!!
In the 4 hour chart below you notice that price climbed and then dropped at a RN, and I have drawn in a resistance line, which was used earlier as a support line when price was falling.














I’m afraid to say that it is now a waiting game to find out what is happening. This could either be a flag and price is chillin before it climbs some more, or could it be that the resistance line will be knocking price back to the support line that price climbed from. See what you think?
Here is some food for thought, price is currently hovering around a Fib breather level which helps support the theory of price being in a flag, but is this enough?

Happy Trading

Richard Monnery

GBPJPY was worth the wait... but what next?

Good evening ladies and gentlemen

I hope you all had a wonderful weekend and managed to continue that into the start of the week with a great day in the market. We were spoilt here in London and around The UK with some beautiful weather and hope you were blessed with the same where ever you maybe.

So our currency pair over the last week was the GBPJPY and we were waiting for a certain setup to materialise and with some patience and persistent it did, with a move of over 350 pips today.

Below is the monthly chart and we can see that a recent 123886 in a long term down trend at the possible end of a period of retracement may have had an influence. Is a convergence or divergence necessary if we are following the trend?

Below is the daily chart which confirms the move we were waiting for. The 123886, the figure, the divergence and the candlestick were worth their weight in gold and you would have been handsomely rewarded if you had purchased your tricket for the ride. Stochastics also got in on the act!

The question now is how long can we expect this reversal. Is this a temporary resistance held by the figure or will we see a retest in the future and a possible break. Below is the 1 hr chart and early signs look interesting including an interesting candlestick at the end of play today. Day Walkers may be grateful for the fruits of their labour for the day and may chose to tighten stops if they haven't chosen to do so already?! On the contrary, the VI seems like it is holding strong!?

I will leave it to do your own analysis to determine your next moves! Good luck!

Alright Rich. Yeah I had a sound weekend mate. You?

The answer to your riddle is A Few Good Men?! I haven't seen it but my cousin has!

My riddle is "But Someday we ought to be able to.... as it has already begun!" Which film? Now this is difficult but a classic none the less!

Till tomorrow

Abundance is your Birth Right

Zaheer Anwari

Target Hit!!

Good Morning Dynamic Traders,

Hope you all had a great weekend, and are ready for a week of making money!

In the 4 hour chart below you will see that price did reach the area I said on Friday. You will also notice that price has slowed up and has started to oscillate.

This oscillation could indicate that price has run out of steam, and with the convergence from the MACD should we be expecting price to reverse. With price oscillating around the support line and at a RN we now have 4 confluence of events support the theory that price is due to reverse soon.
Depending on what kind of trader you are is this enough evidence to trigger trade?

Remember all always carry out your own analysis.

Happy Trading

Richard Monnery