Up, Down, Up, Down

Good Morning Dynamic Traders,

Well the weekend has finally arrived and I hope you have had a successful trading week.

To be honest I don’t feel there is too much to update on the CHF today as I have covered a lot this week. Since yesterday price had continued to climb and it tagged the VI which is also at a RN. From here price then fell and found some comfort and a previous S/R line, which also happens to be at a fib breather level.













It will really interesting to find out where price goes, because it seems that price has been trying really hard to break out of the down trend.

On Monday I will conclude the week following the CHF and I will also decide whether or not I stay with the CHF for another week!

Hope you all have a great week

Happy Trading

Richard Monnery

EURCAD in consolidation?

Good afternoon ladies and gentlemen

Almost at the end of another trading week. Let's see how the EURCAD has behaved since yesterday as I was unable to do an update then! Apologies!

So when we left her last, price was doing a DT with a divergence on MACD on the 1 hour chart and true to form price has since com back down and has been hovering sideway within the S and R zone, at one point even breaking south to restest the VI.

As SM we should know that price never moves in a straight line. After a big move, there is always a period of adjustment before a further move in that direction. It is usually during these periods where psychology plays a massive part in trading. Stops maybe tigthened and trades may be closed. Depending on your entry, swing traders may find that during these periods of retracement they go from being in a healthy profit to negative territory. As a result stops are tightened as damage limitation only to see price turn in their favour but after being stopped out!

However, as SM we "go with the flow" and understand the "trend is our friend" and do nothing but follow our TP and not deviate in the slightest and let the market take its natural course!

So below is the daily chart and we can see that price has been bullish since 9th of June 09. After a continuous move North it seems like we are seeing our first period of adjustment.

The question is how far could price drop before or if we see another move up. Could we see price drop as far as the RN? Or could it be that price has dropped as far as it wants seeing as on the 4 hour chart (posted below) the trend line, the S and R zone and the RN cluster prove too strong for price to break and push price up?! What are the other indicators saying? RSI has just crossed the midline! I will leave you to check the rest!

I will leave you with this thought "Do you ever feel compelled to make a trade because you think you might miss out?"

Till tomorrow

Abundance is your Birth Right

Zaheer Anwari

More price action on the Swissy

Good Morning Dynamic traders, hope your all enjoying the sunshine!

Yesterday I gave you the answers to the two questions from Tuesday’s update! Today I would like to focus a little more on the question in regards to how far will price drop.
From the 4hour chart below you can see that price dropped 150pips roughly after I posted my update. With price falling my question of how far will it drop became very relevant. I said yesterday that we should be looking at our S/R lines. You can see in the chart below I have marked out two S/R lines that had a key part in changing the direction of price. You will notice that these S/R lines are in close proximity to a RN, and they have both been used previously.
Hopefully you can see the simplicity of using Support and Resistance lines and how they can really aid you in managing your trades. However if you don’t have the confidence in using just S/R lines, look at what the other indicators are saying. In this chart you can see that the RSI changed direction and was showing signs of price getting stronger.













As always we are left asking ourselves what will happen next? As we aren’t predict the future, I suggest we prepare ourselves for every scenario, so that we are always ready to catch any potential profits.

Happy Trading

Richard Monnery

What’s the CHF up to now??

Good Morning Dynamic Traders

Half way through the week now, and I hope your catching lots of profits.

The CHF has been moving a lot over the last couple of days, which is a clear sign of price oscillation. This generally isn’t the best time to enter a trade if you are a long term trader as the market is very noisy. This is why I have been posting updates on a 4hr chart, because I am able to break down price movement easier and try to explain why price is behaving the way it is. However if you are a short term trader your going to be having a really exciting and possibly stressful time with the CHF.

Yesterday I mentioned that the RN 1.0800 was having a slowing effect on price, I also mentioned that this didn’t mean price would reverse at this area but anything is possible. Well if you look at the 4hr chart below you will see that price did indeed reverse, and in a big way.
I left you with a couple of questions yesterday, the last question I asked was













“if price does decide to reverse what signs should we be looking out for?”

There are a few answers for this question and I will go through some of them now. I had already given you one of the signs which was price. You will notice that we have short term MACD convergence, with a buy signal. Stochastics was also providing us a buy signal after it fell below the under sold level, and the RSI was also showing signs of a reversal. Another sign that I used miss in my very early days was the shape of the candlestick itself!

The second question I asked was “If price does continue to fall, how far will it drop?” I won’t go into too much detail here, but one of the main tools here is your Support/Resistance lines and key pivots.

The reason why I finished my update yesterday asking what should you be looking for if price reverses and how far will price drop if it continues to fall, was to demonstrate that we can’t predict what price is going to do, but we can try and prepare ourselves for whatever price does!

I look forward to tomorrow, to see what the CHF does next!

Happy Trading

Richard Monnery

EURCAD feeling cosy!

Good evening ladies and gentlemen

I hope you are all in profit on this beautiful summer's day! Long may it continue!

So to the second day of the EURCAD for this week and as you may already know, if like me you have had an eye on it all day, there is not much to report on really. Since the break of the S and R Zone, price has found comfort at the RN of sorts directly above it. It has tested the S Line once and we may see it happen again as a catalyst for a further move up. On the contrary, we have had a divergence on MACD for quite some time and with the foramtion of a double top we could see the Bears outdo the Bulls and as a result see a drop in price!

Below is the 1 hour chart which shows the lack in movement in today's action but also what is mentioned above! RSI is closing in on the midline so could that be of any significance?

Could we see any interesting moves by tomorrow morning? We will just have to wait and see!

I will leave you with this thought "Do you ever find yourself planning trades you never execute, and executing trades you never planned?"

Till tomorrow

Abundance is your Birth Right

Zaheer Anwari

Bearish Flag it is!!

Good Morning Dynamic Traders,

I hope you have had a successful start to your trading week.

Yesterday I spoke about the possibility that price could be in a bearish flag, which has been confirmed with price falling further. If you look at the 4hr chart below you will see that price had failed at the RN, which was also at the fib breather level. I have also marked on the chart below a S/R line. You will notice that this line is at another RN, and look at the effect this area is having on price.














This is not to say that price will reverse at this RN, but anything is possible!

What do you think will happen next? If price does continue to fall, how far will it drop? Or if price does decide to reverse what signs should we be looking out for?

I will answer these questions tomorrow to give you a chance to have a look first, and see if we come up with the same answers!

Happy Trading

Richard Monnery

EURCAD pushes through but is it playing with us?

Good evening ladies and gentlemen

I hope you all had a wonderful weekend! What weather we are having!! Simply amazing! The only problem with this weather is dealing with the people who complain how hot it is! Strangely it's the same people that complain when it's too cold!! How does that work?

So it's our second week with the cross currency pair of the EURCAD and she is currently sitting in a very interesting position after the Bulls beat the Bears to the tune of around 130 pips so far.

Below is the 4 hour chart. Last week I left you with the dilema of what could happen according to your/our analysis! However could the oh so familiar saying of The trend is your friend be holding true once again! On Friday, price was being held by the R Line but as we can see today it has managed to break through that! So now could we be seeing a fake break out with the formation of reversal candlesticks that we can see currently happening or could price now use the R Line as a S Line for further Bullish move. Looking at the indicators MACD is still below the midline but closing in on it! RSI and Stochastics are not yet OB which could indicate further Bullish movement!



As always do your own analysis!

I will leave you with this thought "It's easy to see why a society's need for structure and the individual's need for self - expression can conflict. Every person who wants to master the art of trading faces such a fundamental conflict!"

Till tomorrow

Abundance is your Birth Right

Zaheer Anwari

Week 2 on the Swissy

Good Morning Dynamic Traders,

Hope you all had a great weekend and made the most out of the weather.

I have decided to stay with the CHF for another week, so what action did Friday bring us!
On Friday’s update I asked you what you think price might do, I also gave you a couple of clues, so let’s see what happened.
In the 4 hour chart below you can see that price is currently climbing! You notice that price fell below the VI, but it then hit the fib breather level, which helped support price and help it climb.













However price is still below the VI, which means that the VI will acting as resistance now. The VI also happens to be at RN, so if price is to climb it will have to work very hard.
Another way to look at the current position of price is that price is in a bearish flag, which is confirmed by a fib breather level. Is this an option for price?

Today’s action could be very interesting and I can’t to update the CHF tomorrow morning.

Till tomorrow

Happy Trading

Richard Monnery