Daily FX | Dynamic Trader Blog

New Regulations

Hello Dynamic Traders,

As most of you will be aware the new NFA regulations have come into force and you may see some new additions on your trading account on Sunday night (GMT).

Those of you who hedge on your currency accounts will no longer be able to continue this practice. The NFA FIFO rule that is in place (for US accounts only)  is to prevent the ability to hedge. If you open multiple position on a currency, until now most of you (depending on broker) have been able to close whichever position you wanted and in whatever order you wanted. The FIFO rule (first in first out) means you can now close only the first position first and then the second position second. In other words, the order in which you opened your multiple positions on that currency is the order you will have to close them.

Also, if you take out a long position on a currency lets say using our Double Deviation strategy and you decide you want to take out a short positon on that same currency using our 3D strategy, then in effect what will happen is your 3D position will close your Double Deviation position. The short position will not open because a long position is already in play, so instead now the short position will actually close all or part of the original long position.

To get around the above issues, you can move your broker to the UK account broker if they have one or close that account and open a spread betting account in the UK (if your not a US citizen). If you really want to continue with your current US broker, then if they allow this, you can open multiple accounts so then you can choose one account to always use for long positions and you can use the other account for short positions. This will be the same as hedging but across two accounts with the same broker. However, the first in first out ruling will still stand but that should not really be much of a concern to dynamic traders from they way you all trade based on what you have been shown of the members webinars.

Another trading month is over and most of you will have had some very good trades so now it is time to enjoy the weekend, do not think about trading until you perform your analysis.

Do not forget to visit our other forex blogs.

Saba and Bijal's updates
Richard and Zaheer's updates
Clayton and John's updates

Good dynamic trading.

Javid Shaik
Forex Analyst

CADJPY Break Out

Hello dynamic forex traders,

I hope you enjoyed your weekend and spent some time preparing for the trading week ahead.

The CADJPY recently passed the VI after convrgence of MACD on the daily time frame. This has now been added to my watchlist and for those new traders looking for an entry, go down to a smaller time frame to establish a low risk position but as always beware the traders remorse.

Todays forex trends chart taken from the Dynamic Trader Trend Analyser is below for your guidance.

You can read Javid's forex update on our sister forex blog.
You can read Richard's update on our other sister forex blog.

I wish you all a good trading week.

Anne Chapman
Currency Analyst

Dollar direction

Hello dynamic traders,

As you may already know, some of the major pairs are in a consolidation phase so I though we could look at the Dollar Index to see what is going on.

The Index has been in a decline from the beginning of March this year and demonstrated an almost accurate measured move in the pullback later the same month. After reaching it's previous resistance level it promptly continued it's move to the VI. After breaking that with a flag and continuation to another almost accurate measured move a consoldation has ensued. This consoldation has given us a triangle formation and this morning the last price as you can see from the chart below has broken the lower support level but as you know this could be a fake breakout.

If the Index has indeed broken out and continues the slide down we have support in the 7800 zone and to the upside we have resistance in the 8200 zone.

Watching this Index will help us in analysing the majors.

Chart of daily Dollar Index below is by courtesy of Advanced Get and the data is provided by eSignal.

I would like to congratulate Prakash for last weeks excellent trading. Very well done and you have every reason to be very happy with yourself.

You can follow me on Twitter here.

Good trading...

Anne Chapman
Currency Analyst

What next?

Good morning dynamic traders,

The Dow Jones has been in a decline since October 2007 and from March 2009 this market has bounced. More recently it tagged a resistance point and has again started to decline postMACD divergence.

If we examine the daily Dow a little closer we can see that a head and shoulders has formed at the VI. Right now we are close to the figure but if the decline continues short term then we might see further weakness of another 500 points. Beyond that support we have room for another 1000 points.

This will be a concerning time for the Dow and the S&P is not too disimilar so let's wait and see what develops here as of course this could be some form of profit taking. Why not study the chart and make up your own mind.

 

Chart courtesy of Advanced Get. Data supplied by eSignal.

Javid Shaik
Forex Analyst

New Trading Week

Good evening dynamic traders,

Now that last weeks NFP is behind us we can get back to normal trading again although we still have UK bank rate to contend with later this week.

The GBPUSD has provided gains on the long side over the last couple of months and is now in consolidation. Although forex is renown for it's big trends, trends occur based on certain factors such as how well the country is performing against it's counterparts or how many have been made unemployed this month or what the current interest rate is. Fundamentals has often played a big role in directing the price and this is usualy the case at times like now where the GBPUSD is waiting for some form of guidance. In the end the guidance will be provided by either the bulls or the bears but right now they are fighting amongst themselves with no real belief in their cause. That may change later this week where the price could perform a breakout for a continuation or reversal but it could always stay in it's comfort zone and bore us with some further consolidation above the value index.

The Dynamic Trader members who are not already in this position will know what needs to be done here and should act according to what Javid has shown on the forex webinars.

I was going to attach one or two screen shots of the GBPUSD but as it is moving sideways I thought instead I will put up a few photos from yesterdays day out at Wimbledon. We have more than 200 pictures from all three of yesterdays games but I took the first few of the bunch only so not to inundate this blog with tennis.

There were a few famous faces in and around the Royal Box.

Sue Barker interviews a few legends.

Warming up for the Women's final.

Hope you all have a profitable week.

Good trading...

Anne Chapman
Currency Analyst

Daily Forex Trends

Good mornig dynamic traders,

Here are todays forex trends.

Forex Trends taken from the Dynamic Trader Trend Analyser

Javid Shaik
Forex Analyst

Looking for an opportunity

Good evening dynamic traders,

It has been another busy week for us which has again prevented our consistent updates. However, I know you will have all benefitted from the updates from the Dynamic Trader bloggers on our other forex blogs www.fxcps.com, www.fxcps.co.uk and www.fxcps.eu

Today I would like to mention what I think regarding the Loonie. This pair looks to be getting ready for a position from it's recent move. Use our two legged extension to check for the initial current target. If an entry is on the cards then use the methods shown exclusively on the Dynamic Trader forex webinars to take a position on the right side.

Do not forget tomorrow the price could be affected by the CPI and Unemployment Claims. This will be a good guidance for direction too.

Below is today's forex trends.

Forex Trends taken from Dynamic Trader Trend Analyser

Good trading...

Javid Shaik
Forex Analyst

Yesterdays Analysis

Good evening forex traders,

Further to yesterdays webinar analysis we can see today at the time of writing this update the GBPUSD has rallied 250 pips and the USDCAD has dropped 139 pips.

I am hoping this has shown you all the zone of reversal and the effect it sometimes has. The basic analysis demonstrated was to provide you all with simple techniques you should all look to implement. This is a very simple method of making money from the markets.

Many of you have emailed regarding questions since yesterday and I have not had the time to reply to all of you as yet but I am still going through them and will get back to you all by tonight.

Below are todays forex trends.

Forex Trends taken from Dynamic Trader Trend Analyser

Javid Shaik
Forex Analyst

Profit taking day

Good evening forex traders,

It has been one extremely busy day for us and I am not talking about the markets. I was hoping to do an update this morning but this is the earliest I have had a chance to do one. As a result of being so busy since we have been back from our road trip, we have decided the next few days of this week, all emails and calls will be put on hold and dealt with from Monday at the earliest and not before then so please be patient.

The currency markets seemed to be taking some profits today and is also gearing up for some big news this week so we have witnessed some intraday pullbacks. This is normal behavior as has been pointed out previously. Below is the chart for todays forex trends.

Taken from Dynamic Trader Trend Analyser

While talking with Roger today who I am sure will become an excellent currency trader in time, I realized a few things while going through his notes from our one to one training. Roger's colour is green and subsequently he assimilates information in only the way greens can do. I went through his notes from our mentoring today and noticed how crystal clear it was. No waffle, just clear precise points. It was as if the whole two days was one big trading plan for him. That explains how he managed to pick up two strategies so easily and quickly.

Roger has an affiliation for Double Deviation and 123's and it seems to be a favorite amongst many of you and for good reason. However, a stumbling block I have found many traders face is a subconscious need to be right when the market does not do what they were expecting and then what takes place is a period of torturing data to se why it did not do what they were expecting and subsequently self sabotage. This is a cycle majority go through and as a result miss the obvious set ups and end up taking the obscure set ups. Trading is not easy, if it was everyone would do it and of course that is not the case. However, trading is not difficult but what is easy to do is to make trading more difficult than it is and end up feeling lost. Roger has the right idea, he kept it very simple and my advice is that is what you should all do too.

Life is complicated enough without bringing it into your trading.

Javid Shaik
Forex Analyst

Weak EURGBP

Good morning forex traders,

The EURGBP has been bearish for a few weeks and now could be showing further signs of weakness. The break of C4L could be the catalyst for further downside but watch out for traders remorse.

The USDCAD is still showing bearishness despite the previous daily candle formation. We may see a pullback short term though.

Although Gold has reversed a little yesterday and today, our model is still showing bullish signs.

Crude oil is still bullish according to our system and is likely to tag as per our original analysis of the $70 region. Since the webinar crude oil has climbed to 600 points profit.

Today's forex trends are below. You can click the table to expand it.

Good trading.

Javid Shaik
Forex Analyst