Hi All,
So finally the much awaited breakout has well and truly arrived. And how it was. It led to a huge gain of more than 200 pips for both GBPJPY and GBPCHF.. I am sure a lot of you would have made nice little profits in this. You should have. It is always easy to make nice good profits on an upmove and in a trend when you already know that the trend is coming.
Well, if you did not know that the upmove was coming, then you need to still learn a lot more in this market. Last few days, there were quite good signs of a breakout coming along. The ranges were getting tight, the tops and bottoms kept holding on well despite the movement in other currencies and despite the various news. The more the range trading takes place, the bigger the breakout would be and thats what we saw today. The tight range trading kept going on and on for 4-5 days and the more the number of days it went on, the greater will be the speed and ferocity of the breakout when it arrives. GJ was the one which has range traded the most and today it could be seen that its range was double the normal range.
Now a bit of consolidation and a bit of retracement would take place before the next upmove. All the consolidation and retracement are just fueling up for the next move. No one knows when this would change trends and when this would stop. But as long as you are in the direction of the trend, there should not be much to worry about.
Happy Trading!!!
Tuesday, July 17, 2007
Monday, July 16, 2007
Supports and Resistances for July 17, 2007
Hi all,
It has been quiet so far this week. No major changes in any of the currency pairs. GU seems to be the most active one making new highs everyday but it seems to be getting ready for a drop. Lot of important news scheduled to be released today both from GB as well as USA and this should make this a very interesting day. I would not like to stick my neck out and say what is going to happen except that we might expect a break in the range trading of the crosses today. The crosses have been within a small range for many days now and it only a matter of time before they break that range. Below are the supports and resistances for the JPY crosses for today:-
USDJPY - Important support at 121.88. If that is broken, next support is at 121.40 which is a very strong support and the final major support is at 121.10. On the topside, the resistance is at 122.66 and then at 123.40.
EURJPY - Important support at 167.98. If that is broken, next support is at 167.57 and the final major support is at 167.18. On the topside, the resistance is at 168.36 and then at 168.80.
GBPJPY - Important support at 247.75. If that is broken, next support is at 247.40 and the final major support is at 246.88. On the topside, the resistance is at 248.44 and then a major resistance at 248.89.
Happy Trading !!!
It has been quiet so far this week. No major changes in any of the currency pairs. GU seems to be the most active one making new highs everyday but it seems to be getting ready for a drop. Lot of important news scheduled to be released today both from GB as well as USA and this should make this a very interesting day. I would not like to stick my neck out and say what is going to happen except that we might expect a break in the range trading of the crosses today. The crosses have been within a small range for many days now and it only a matter of time before they break that range. Below are the supports and resistances for the JPY crosses for today:-
USDJPY - Important support at 121.88. If that is broken, next support is at 121.40 which is a very strong support and the final major support is at 121.10. On the topside, the resistance is at 122.66 and then at 123.40.
EURJPY - Important support at 167.98. If that is broken, next support is at 167.57 and the final major support is at 167.18. On the topside, the resistance is at 168.36 and then at 168.80.
GBPJPY - Important support at 247.75. If that is broken, next support is at 247.40 and the final major support is at 246.88. On the topside, the resistance is at 248.44 and then a major resistance at 248.89.
Happy Trading !!!
Market Commentary...
Hi All,
The crosses still seem to be caught up in a small range and they dont seem to have been able to break out of that. The only encouraging thing so far is that none of the crosses have broken to the downside which shows that they have a lot of strength and support at the bottom.
GJ seems to have been caught in the range of 247.9 and 248.9 and cannot come out of it even though GU has been making new highs daily. But this is good in a way as this gives us the opportunity to trade the S and R effectively.
Tomorrow some more important news is to be released and we need to see the effect of that. So far, the news which came out of USA today did not seem to affect the pairs in any big way and so we have to wait and see what happens with the news coming out tomorrow. The yen crosses seem to be quite strong and as said, they have quite good support. So i feel that it is only a matter of time before there is a breakout on the long side. But of course, tomorrow is a new day and with that we need to see what it brings along. The Japanese would also be back tomorrow after their holiday and we need to see how they react to the current market situation.
Happy Trading!!!
The crosses still seem to be caught up in a small range and they dont seem to have been able to break out of that. The only encouraging thing so far is that none of the crosses have broken to the downside which shows that they have a lot of strength and support at the bottom.
GJ seems to have been caught in the range of 247.9 and 248.9 and cannot come out of it even though GU has been making new highs daily. But this is good in a way as this gives us the opportunity to trade the S and R effectively.
Tomorrow some more important news is to be released and we need to see the effect of that. So far, the news which came out of USA today did not seem to affect the pairs in any big way and so we have to wait and see what happens with the news coming out tomorrow. The yen crosses seem to be quite strong and as said, they have quite good support. So i feel that it is only a matter of time before there is a breakout on the long side. But of course, tomorrow is a new day and with that we need to see what it brings along. The Japanese would also be back tomorrow after their holiday and we need to see how they react to the current market situation.
Happy Trading!!!
Sunday, July 15, 2007
Supports and Resistances for July 16, 2007
Hi all,
Quiet start to the new week with the holiday in Japan. So not much activity over the next few hours and the real trading would start with the open of the London session. The crosses look strong at the open today but they really need to break through the tight ranges that they are in for the last week for them to go even higher. Unless the range is broken on the upside soon, then we run the risk of losses. I believe that this week would be good for the longs on the crosses as usual. But there is quite a lot of important news being released from GB this week and these may tend to drag the GU and hence the GJ as well. These should make this an interesting. Lets see.Below are the supports and resistances for the JPY crosses for today:-
USDJPY - Important support at 121.88. If that is broken, next support is at 121.40 which is a very strong support and the final major support is at 121.10. On the topside, the resistance is at 122.66 and then at 123.40.
EURJPY - Important support at 167.98. If that is broken, next support is at 167.57 and the final major support is at 167.18. On the topside, the resistance is at 168.36 and then at 168.80.
GBPJPY - Important support at 247.75. If that is broken, next support is at 247.40 and the final major support is at 246.88. On the topside, the resistance is at 248.44 and then a major resistance at 248.89.
Happy Trading !!!
Quiet start to the new week with the holiday in Japan. So not much activity over the next few hours and the real trading would start with the open of the London session. The crosses look strong at the open today but they really need to break through the tight ranges that they are in for the last week for them to go even higher. Unless the range is broken on the upside soon, then we run the risk of losses. I believe that this week would be good for the longs on the crosses as usual. But there is quite a lot of important news being released from GB this week and these may tend to drag the GU and hence the GJ as well. These should make this an interesting. Lets see.Below are the supports and resistances for the JPY crosses for today:-
USDJPY - Important support at 121.88. If that is broken, next support is at 121.40 which is a very strong support and the final major support is at 121.10. On the topside, the resistance is at 122.66 and then at 123.40.
EURJPY - Important support at 167.98. If that is broken, next support is at 167.57 and the final major support is at 167.18. On the topside, the resistance is at 168.36 and then at 168.80.
GBPJPY - Important support at 247.75. If that is broken, next support is at 247.40 and the final major support is at 246.88. On the topside, the resistance is at 248.44 and then a major resistance at 248.89.
Happy Trading !!!
Saturday, July 14, 2007
Which indicators to use??
Hi All,
There are loads and loads of indicators out there and so all the new traders are overwhelmed with the amount of information at their disposal and also at the number of indicators. They do not know which ones work and which ones do not and which ones to use and which ones not to use.
Let me tell you something. All the usual, well known indicators work well. In fact, that is why they are well known. But at the same time, dont expect the indicators to tell you what the market is going to do. Indicators are like tools like hammer, scissors etc. It is upto you to learn to use it and find out how best to use it. Like any tool, indicators can be used to make a lot of money and also lose a lot of money. It all depends on the person who uses it. Moreover, as i keep saying, indicators are always reactive and not predictive. They always tell you what has happened and not what is going to happen.
For those who are new, the moving averages are the best and the most easy indicator to understand and use. The MA crosses are one of the most frequently used systems as well. Of course, the MA is always lagging and so it is upto the user to find the best and most optimum use for it. Try to understand what it is and how it works and then find how you can use it to improve your trading. Moving average for n periods is just the average of the price for the past n periods. If the current price is above that, then it means that the current price is above the average and vice versa. The lesser the value of n , the more reactive the average is to the price. The greater the value of n, the more smoothed the MA would be. There are many types of MA like simple, exponential, linear weighted etc. and they are the most used indicators for trading systems. Throw in various types of MA with different periods on the charts and watch for patterns between the MA and the price and you will learn a lot.
Likewise, RSI is a very good indicator as well and if properly used, it can tell you the fibs, pivots and S and R to a very precise extent. It would be amazing, but if u get the right combination of inputs to RSI, it would be amazing to note how it perfectly matches the daily fib levels. You dont need to even see the fibs, just get the correct combination of TF and RSI and you can see the fib levels automatically. I have seen it happen and it is really eerie to see the relation between the RSI and the fibs. They just seem to know each other so well.
Try and play around with various indicators with various settings and time frames and find out the one which works best for you. There is no such thing as the best indicator. It is all upto how you use it and how comfotable you are with it.
Happy Trading!!!
There are loads and loads of indicators out there and so all the new traders are overwhelmed with the amount of information at their disposal and also at the number of indicators. They do not know which ones work and which ones do not and which ones to use and which ones not to use.
Let me tell you something. All the usual, well known indicators work well. In fact, that is why they are well known. But at the same time, dont expect the indicators to tell you what the market is going to do. Indicators are like tools like hammer, scissors etc. It is upto you to learn to use it and find out how best to use it. Like any tool, indicators can be used to make a lot of money and also lose a lot of money. It all depends on the person who uses it. Moreover, as i keep saying, indicators are always reactive and not predictive. They always tell you what has happened and not what is going to happen.
For those who are new, the moving averages are the best and the most easy indicator to understand and use. The MA crosses are one of the most frequently used systems as well. Of course, the MA is always lagging and so it is upto the user to find the best and most optimum use for it. Try to understand what it is and how it works and then find how you can use it to improve your trading. Moving average for n periods is just the average of the price for the past n periods. If the current price is above that, then it means that the current price is above the average and vice versa. The lesser the value of n , the more reactive the average is to the price. The greater the value of n, the more smoothed the MA would be. There are many types of MA like simple, exponential, linear weighted etc. and they are the most used indicators for trading systems. Throw in various types of MA with different periods on the charts and watch for patterns between the MA and the price and you will learn a lot.
Likewise, RSI is a very good indicator as well and if properly used, it can tell you the fibs, pivots and S and R to a very precise extent. It would be amazing, but if u get the right combination of inputs to RSI, it would be amazing to note how it perfectly matches the daily fib levels. You dont need to even see the fibs, just get the correct combination of TF and RSI and you can see the fib levels automatically. I have seen it happen and it is really eerie to see the relation between the RSI and the fibs. They just seem to know each other so well.
Try and play around with various indicators with various settings and time frames and find out the one which works best for you. There is no such thing as the best indicator. It is all upto how you use it and how comfotable you are with it.
Happy Trading!!!
Friday, July 13, 2007
Market Commentary...
Hi All,
As expected the crosses did not do anything special for today. I thought that GBPUSD would break down and get ready for shorts but that did not happen. But the news that Iran had asked to be paid in yen has strengthened the yen and anyway lead to the downfall in the crosses as had been expected.
Practically speaking, the above news should not impact the crosses much as the import of oil will be only a very small part of the business and should not involve a lot of money. But i guess the market was waiting for something to take some profits and they did that once they got this news.
Next week, i do not see much going wrong for the crosses and should be an upweek overall once the crosses manage to get out of the ranges that they are caught in right now. Of course, it would take quite a bit of effort to come out of the ranges but they need a really big push. We need to see what would come along to give them the decisive push. If the push does not come soon, then we may see some downturn in the crosses.
I do not wish to comment on whether it is good to hold the open positions over the weekend or not. I guess there are both positives and negatives to that but i personally dont prefer having open positions over the weekend and i try and close them if they are in profit. So just look at your trading style and decide the best course of action over the weekend.
Happy Trading!!!
As expected the crosses did not do anything special for today. I thought that GBPUSD would break down and get ready for shorts but that did not happen. But the news that Iran had asked to be paid in yen has strengthened the yen and anyway lead to the downfall in the crosses as had been expected.
Practically speaking, the above news should not impact the crosses much as the import of oil will be only a very small part of the business and should not involve a lot of money. But i guess the market was waiting for something to take some profits and they did that once they got this news.
Next week, i do not see much going wrong for the crosses and should be an upweek overall once the crosses manage to get out of the ranges that they are caught in right now. Of course, it would take quite a bit of effort to come out of the ranges but they need a really big push. We need to see what would come along to give them the decisive push. If the push does not come soon, then we may see some downturn in the crosses.
I do not wish to comment on whether it is good to hold the open positions over the weekend or not. I guess there are both positives and negatives to that but i personally dont prefer having open positions over the weekend and i try and close them if they are in profit. So just look at your trading style and decide the best course of action over the weekend.
Happy Trading!!!
Thursday, July 12, 2007
Supports and Resistances for July 13, 2007
Hi all,
Nice ranging day on all the crosses yesterday. It is not only the trending days, the ranging days can also make you a lot of money. The crosses stayed well within the S and R and it was easy and interesting trading that. I have expanded my range of trading to include all the JPY crosses (AUD,NZD,CAD) rather than just the GJ, EJ and the UJ. This provides with a lot more choice and a lot more trades. As for today, nothing major should affect the crosses and i feel that they will continue to range today. GU looks very weak and this will be a drag on GJ which will in turn be a drag on EJ. Thats what i feel, lets see though..
Below are the supports and resistances for the JPY crosses for today:-
USDJPY - Important support at 121.88. If that is broken, next support is at 121.40 which is a very strong support and the final major support is at 121.10. On the topside, the resistance is at 122.66 and then at 123.40.
EURJPY - Important support at 168.75. If that is broken, next support is at 168.45 and the final major support is at 167.95. On the topside, the resistance is at 168.95 and then at 169.40.
GBPJPY - Important support at 248.45. If that is broken, next support is at 247.55 and the final major support is at 247.08. On the topside, the resistance is at 249.03 and then a major resistance at 249.70.
Happy Trading !!!
Nice ranging day on all the crosses yesterday. It is not only the trending days, the ranging days can also make you a lot of money. The crosses stayed well within the S and R and it was easy and interesting trading that. I have expanded my range of trading to include all the JPY crosses (AUD,NZD,CAD) rather than just the GJ, EJ and the UJ. This provides with a lot more choice and a lot more trades. As for today, nothing major should affect the crosses and i feel that they will continue to range today. GU looks very weak and this will be a drag on GJ which will in turn be a drag on EJ. Thats what i feel, lets see though..
Below are the supports and resistances for the JPY crosses for today:-
USDJPY - Important support at 121.88. If that is broken, next support is at 121.40 which is a very strong support and the final major support is at 121.10. On the topside, the resistance is at 122.66 and then at 123.40.
EURJPY - Important support at 168.75. If that is broken, next support is at 168.45 and the final major support is at 167.95. On the topside, the resistance is at 168.95 and then at 169.40.
GBPJPY - Important support at 248.45. If that is broken, next support is at 247.55 and the final major support is at 247.08. On the topside, the resistance is at 249.03 and then a major resistance at 249.70.
Happy Trading !!!
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