The Loonie

Good evening Dynamic Traders,

I hope, if any of you took any of the trades I mentioned on the websites fxtts.com & forextrendtradingsystem.com last night, you are all managing them correctly, as between them, since the updates, they have moved between them a total of about 750 pips, so well done to you.

Tonights chart is of the USDCAD on the daily timeframe, which I am looking at for a possible swing trade. As you can see from the chart below, it has been in a consolidation since October 08 after its big move, and at some time has got to break up or down.

Having once been hung up on Elliot Waves but no longer am, I am reading this as a possible W4, and therefore expecting a break north sometime.

From the chart we can see that we broke through the longer term trend line to the downside yesterday and closed below it with a small doji, only to power back into the zone today,after tagging the shorter term trendline.

I shall apply my rules of entry in accordance with my trading plan learnt from 'The Dynamic Trader' webinars and Mentoring classes, and wait patiently.

We also have Stochastics looking like it is about to cross up but has not done so yet, but if it does will add to the confluences.

However, please be aware that high impact news is out on both sides of this cross tomorrow so as usual, be patient, and do not be fooled by false breakouts, as you all know how to trade this situation.

As always, please do your own analysis before taking any trades.

Charts courtesy of TradeStation.

Good luck with your trading.

Clayton Farnworth.