The British Pound.

Good evening Forex Traders,

Tonights chart is of the GBP which has the longer,medium and short term trends all up at present but is currently in a consolidation phase.

Keep this on your watchlist as a possible upmove could be on the way shortly but as at the time of writing I do not have my full quota of confluences but they do seem to be adding up.

MACD is down at the moment but is starting to hook up, whilst GetStochastics is pointing up with false bars on the upside and RSI is above fifty.

However should the move north occur remember recent resistance of early August around the figure area.

Trading conservatively would wait for the consolidation break either way.

High impact news is out tomorrow and as you should all know NFP is on Friday.

As always please ensure to do your own analysis before trading.

Charts courtesy of AdvancedGet.

Good luck.

Clayton Farnworth.

The Pound Dollar.

Good evening Dynamic Traders,

Sorry for not posting last night but had an accident and did not feel I could give my best.

Tonight, after all the pullbacks and consolidation that has been going on, caution and patience have been the best option of late.

However, on looking through the charts I have noticed that the GBP today at present is in the parameters of DD, although this is an unfinished candle, and should be analysed later at the close of play to see if it is still within the rules.

There are obstacles to be considered here, one being the consolidation, and therefore recent highs, but it is looking favourable and with a correct entry and good management, could pay dividends as all trends are up as of yesterday.

Charts courtesy of AdvancedGet.

Good luck.

Clayton Farnworth.

The Pound Dollar.

Good afternoon Dynamic Traders,

I am going to do a quick post now as I have got the webinar later.

This is not a mechanical trade but rather a discretionary one and is of the GBP.

As can be seen from the image below price action has hit a breather level of the movement up from March to August a few days ago, but Get Stochastics as yet is not showing a false bar to the upside although it is in OB territoty.

The recent webinars could soon come into play here so put this pair on your watchlist although more confluences have to occur.

It is currently in 'no mans land' from a swing trade point of view which really should be a break of the consolidation high or low, but can be traded intraday.

From this chart the best way would obviously be with the trend and therefore look for the continuation should the entry become available which could well be after a pullback to the former R/S level with V.I. area.

As always please ensure to do your own analysis before trading.

Charts courtesy of AdvancedGet.

Good Luck.

Clayton Farnworth.

The British Pound Dollar.

Good evening Dynamic Traders,

Tonights chart is of the GBP on a daily timeframe, and I thought I would point out some of the formations that maybe occurring which do look bearish at present, but will let you make your own minds up.

Since about June, price action has made a possible H&S formation, which has now had the neckline breached and now price could be forming a possible bearish flag whilst also currently tagging the V.I. - maybe a kiss good night !?

Price is also at he '00' figure area, albeit not a very strong one, but with the other confluences could add its part, and GetStochastics is showing a false bar to the downside.

Ther are other confluences but this could be one for the wathlist I think.

As always be sure to do your own analysis before taking any trades.

Charts courtesy of AdvancedGet.

Good luck.

Clayton Farnworth.

The Pound Dollar.

Good afternoon Forex Traders,

Price action on the Cable is currently oscillating just above the V.I. in a consolidation with the short term trend still up but not looking healthy enough to trade and coming up to the trendline.

This does correspond with AdvancedGet's labelling as a wave 4 although possible further downside could be possible to perhaps the former support and fibonacci levels and V.I. shown and also the AdvancedGet T.J.'s elipse(not shown).
A supporting confluence for this is that Stochastics is hooking down.

However in this instance, for me, this short trade should it occur has too many obstacles close by to trade off this timeframe but any one wishing to do so should consult the lower timeframe charts.

I shall stand aside on the daily chart here until a break of the confines either way occurs and check for confluences at that point, and trying to avoid false breaks by using the appropriate filters, in other words this one is for my watchlist.

Charts courtesy of AdvancedGet.

Good luck.

Clayton Farnworth.

Cable Analysis

Good Evening / Morning Dynamic Traders

"Better to have tried and failed, than not tried at all"

Cross = GBP: Day Chart (Posted Below)

We have followed the Cable over the last 2 weeks and even though we are "Technical Analysts", the following is good reading:-

The latest political saga out of UK suggests that Gordon Brown's days may be numbered. The British Prime Minister was dealt a devastating blow last night when James Purnell - the Works & Pensions Secretary - quit the Cabinet and told Brown to stand down to save the Labour Party.

Mr Purnell in a letter to Mr Brown wrote, " We both love the Labour Party. I have worked for it for 20 years and you far longer. We know we owe it everything and it owes us nothing. I owe it to the party to say what I believe no matter how hard that may be. I now believe your continued leadership makes a Conservative victory more, not less likely."

"We need to show that we are prepared to fight, to be credible government and have the courage to offer an alternative future. I am calling on you to stand aside to give our party a fighting chance of winning."

If Mr Brown were to step down, the weakened Labour party may be forced to call early elections. The political turmoil in the UK is weighing heavily on the pound, but the cross remains barely above the key 1.6000 level as corporate bids have provided support so far. However, the temptation to knock out those barriers will likely prove too powerful to resist as the day progresses, especially if any risk aversion flows themselves after NFPs.

Ironically enough, an early election and a possible win by Conservative will most likely be viewed as a positive development by the market and Cable could recover, but for now it remains vulnerable to further sell off.

You will see from our day chart, that price has returned to the comfort of our previuos trading channel and looks to test 1.6000 today. All our indicators are Bearish and our Bearish engulfing candle pattern as indicted midweek started the change.

Remember NFP due out today could also weaken the Cable.















Courtesy of Advanced Get / E Signal

Trade with Passion

John Maher
Forex Analyst

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Warning, Beware !

Good Evening / Morning Dynamic Traders

"Better to have tried and failed, than not tried at all"

Cross = GBP : 60min Chart (Posted Below)

I do hope that those of you in the "Cable" trade took head, of yesterdays comments

"We have a key resistance above us from previous October, and with both RSI and stochastics showing a higher than normal reading, a breather or reversal could be likely."

At 0700hrs GMT this morning we had a doji top, divergence, MACD crossover and drop in RSI, this was followed by a drop in price of around 400 pips, ouch !

Today (Thursday) we have a number of major news items, with interest rate announcements from GBP, EUR and CAD within 1 hour. This news could have volatility within our cross and been out of the trade may be the better option.

Swing traders should have made a handsome profit this week from this cross and day traders may even have made 200 pips today out of the 400 available using your "Dynamic Traders" Toolbox.

With Friday being NFP in the West of the pond, our involvement with the Cable is completed for now.

Have a well deserved rest for a few extra days, readjust your trading plan, continue with your readings and we will pick up on Sunday evening.















Courtesy of Advanced Get / E Signal

Trade with Passion

John Maher
Forex Analyst

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Cable

Good Evening / Morning Dynamic Traders

"Better to have tried and failed, than not tried at all"

Cross = GBP : Day Chart (Posted Below)

Those of you day trading may have made from the down move explained in this mornings blog and then the up move from 1100hrs GMT. We highlighted the Bearish engulfing candle formation with price pulling back to 16320, giving you a chance of 180 pips.

We then had a hammer candle formation indicating possible change of direction followed by a move up of over 200 pips, giving a total opportunity of over 400 pips for the day.

For those of you who swing trade then you will or should still be in the trade since entering on Friday and possibly 600 pips to the better.

We have a key resistance above us from previous October, and with both RSI and stochastics showing a higher than normal reading, a breather or reversal could be likely.

As always please do your own analysis before entering the trade and check for news.















Courtesy of Advanced Get / E Signal

Trade with Passion

John Maher
Forex Analyst

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Cable Update

Good Evening / Morning Dynamic Traders

"Better to have tried and failed, than not tried at all"

Cross = GBP : Day Chart & 60min (Posted Below)

Due to the confluence of events from last week, which led to little postings, I am going to continue our following of the "Cable" and would ask you to look back at our initial analysis of this cross to get the overall feeling of where it is. Please press on this " link " to read it now.

Since the "Break out" of the RN, VI and trading channel / Resistance we have seen a rise in price of around 500 pips in the two trading days. After such a large move it is only normal to expect a breather or pause in the move and that is what we have as I write this blog.
















We could see price pull back and use resistance as support giving us an ideal opportunity to enter the trade.

On looking at the 60 min chart you will see that from the recent higher highs (a bearish engulfing candle) we have "Divergence" followed by the MACD lines crossing over, RSI below the mid line and stochastics heading down.















Courtesy of Advanced Get / E Signal

Trade with Passion

John Maher
Forex Analyst

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Cable

Good Evening / Morning Dynamic Traders

"Better to have tried and failed, than not tried at all"

Cross = GBP : Day Chart (Posted Below)

Bank holiday weekend and no time to do an update last night or this morning.

I had to bring to your attention the Cable after seeing the chart over the weekend.

As usual drilling down from the top, the "Monthly shows we are now in an up trend since March, which could be a recovery but be aware it could also be a retracement before heading back down as price is currently at a breather level.

The weekly shows price rising, between a nice trading channel and price currently at the top line, which co-ensides with the Advanced Get "Elipse" of the 4th wave. Stochastics are very high at 94.63 which could signal a change of direction soon.

The Day chart as illustrated shows the price moving between the trend channel much clearer, it also points out that not only have we hit the top of the channel, but we have met the VI and a major RN at the same time. If we take the time price pierced the channel previous and recently we will see signs of "Divergence". RSI has not been at it's current levels for some time and stochastics also is high at 96.65 even though it is giving a false reading.

In summary the Long term trend is up and a BOB of the RN would be an ideal entry using ESLT, however short term, price reversing could lead to price moving towards the lower trendline.

Please ensure you carry out your own analysis before placing a trade and always use a stop.

I will be unable to update tomorrow due to leaving for Rome in 3hours for the Final vs Barcelona, Com'on United. I will return on Thursday.















Courtesy of Advanced Get / E Signal

Trade with Passion

John Maher
Forex Analyst

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GBP cresendo

Good Evening / Morning Dynamic Traders

"Better to have tried and failed, than not tried at all"

Cross = GBP : 240 Chart (Posted Below)

With another red candle yesterday (Thursday) where is price looking to move to next.

On the 240 chart below we have price at the eclipse of wave 2-3 and we have the MOB inserted above with the intention of the wave 5 passing through this point.

Note also the major RN sat above the MOB

You will see on this time frame we have been in an up trend since 11th March and if you take a measurement from the low of 18th March we are nicely turned at a breather level.

Add to all this the confluence of Stochastic s at its lowest, yet not quite turned as I write and we seem to be setting up for a further move upwards.

I am sorry that this cross has not as yet given the profits we were expecting this week, but maybe this anticipated move will compensate for that.

As always do your own analysis before entering a trade and use a stop .

Have a great week end, take time to assess your trades of the week and look ahead with what next week could have in store.
















Courtesy of Advanced Get / E Signal

Trade with Passion

John Maher
Forex Analyst



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GBP Tug of war

Good Evening / Morning Dynamic Traders

"Better to have tried and failed, than not tried at all"

Cross = GBP : DAY Chart (Posted Below)

229 pips up, 183 pips down ? If you have managed your trade, I hope you did not give all your gains back to the market today.

The indicators we use at the bottom of chart are all saying we are near exhaustion of our current move, was today that breather, have we got our breath back or do we need more air ?

Is RSI trying to show us a head & shoulders ?

Has stochastic s turned ?

Do your own analysis before entering a trade.















Courtesy of Advanced Get / E Signal

Trade with Passion

John Maher
Forex Analyst



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Cable car ride up ?

Good Evening / Morning Dynamic Traders

"Better to have tried and failed, than not tried at all"

Cross = GBP : DAY Chart (Posted Below)

229 pip movement today amongst various news items, are you in this trade for the short term or long haul ?

As we tend to use the day chart as the basis of our analysis, I would say we are in these trades for a couple of days to a week. The momentum of the day chart usually carries the moves with it for a longer time frame, rather than in and out within the hour. What do you do ?

We identified a BOB at the week end and used our tools to enter the trade at an appropriate place. This happened yesterday and now we must plan our exit.

We have the RN 1.5000 above and this must provide an area of resistance to us. The MOB within Advanced Get provides with an area of 1.5200 to be looking at.

Remember you will never know the peak of a movement or the bottom, so decide on your goals and leave some money on the table for the next man. Manage your trade through out.















Courtesy of Advanced Get / E Signal

Trade with Passion

John Maher
Forex Analyst



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Bulldog bites back !

Good Evening / Morning Dynamic Traders

"Better to have tried and failed, than not tried at all"

Cross = GBP : DAY Chart (Posted Below)

After a day of indecision as to whether to confirm the BOB or not, as I write the blog, price will have triggered those Dynamic Traders into the trade that used the relevant tools from their bag. RN 1.45 played its part today (Monday) as price fluctuated, and it seems a distant past as we currently are at 1.4683.

I have shown the RSI indicator below the chart, please note the previous 3 lower highs on price have produced higher highs on RSI, cue the break out !

There is a long way to go in the trading day yet and recent candle bodies have not been to enhanced. With a number of news items due before my next post, the market could decide to please itself. Lets look to some reserves left in "stochastic s" before it runs out of steam and note the major RN sat above providing our next resistance.















Courtesy of Advanced Get / E Signal

Trade with Passion

John Maher
Forex Analyst



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GBP Homecoming ?

Good Evening / Morning Dynamic Traders

"Better to have tried and failed, than not tried at all"

Cross = GBP : DAY Chart (Posted Below)

I trust we all had a good weekend and time to re access the markets after wed evenings extra ordinary movements. I know some people were on the right side of the moves, and I have heard some people comment they knew they were about to happen, but I would imagine the majority of traders would have been stopped out of their positions and wondering what they had done wrong. Oh well in today's turbulent and volatile markets these things are going to happen and it is one reason for using a stop and managing your trade.

This week I have chosen our own "Cable" to follow on looking through the charts. The Cable has been in a down trend since it's peak in November 2007. The steep drop has seen a few rallies at the end of 2008 and start of 2009, with a low of around 1.35 in the last week of January.

We have a nice pair of trading channels since November 2008, of which we had a BOB on Thursday last week. Dynamic Traders using their tool bag would not yet be in this trade as they sit awaiting entry, however their traps should have been set and primed.

Will price break out or return to the comfort of the trading channel, let's see this week.















Courtesy of Advanced Get / E Signal

Trade with Passion

John Maher
Forex Analyst



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Are you prepared ?

Good Evening / Morning Dynamic Traders

"Better to have tried and failed, than not tried at all"

Cross = GBP : 60min Chart (Posted Below)

Long Term Trend = Down : Short Term Trend = Down

Did you read yesterdays Blog ?

Did you take action ?

Those that did would have taken a slice out of the 200 pips on offer on the days candle. Do not be greedy, and leave some pips on the table for the next man.

Again using the BOB with ESLT as entry would have rewarded you well. This one trade would have helped repay your webinar course greatly, and those who follow the blog and have not done the series must ask yourself "Why ?" Contact Javid now.

You will see from the 60 min chart that price has tried to return to the fold since our gains and currently resistance has become support.

We have stochastic s at OS, RSI below 50 but currently pointing up, MACD under the signal line and on the verge of crossing down the zero line.

The retail price index is hovering above price, providing further resistance to the upwards movement, making a downward move more likely back with the trend.

As always do your own analysis of your trades.

Thank you for following the blog this week and I do hope you learnt at least ONE thing to carry forward and make you a better trader in the future.

The forex market is abundant of money, how much do you feel is yours ?

Do you REALY believe that ?

Have a great weekend, speak to you Sunday night.

Follow me on twitter, below to get instant message when the blog is updated.















Courtesy of Advanced Get / E Signal

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John Maher
Forex Analyst

What goes UP, Must come DOWN !

Good Evening / Morning Dynamic Traders

"Better to have tried and failed, than not tried at all"

Cross = GBP : 60min Chart (Posted Below)

Long Term Trend = Down : Short Term Trend = Down

After been bitten by the bull candle on Tuesday 0800hrs, price oscillated and came back down some 24hrs later to where it started, providing us with a further lower low on the 60min chart. For the last 3 days between 0700-0900hrs we have been given a lower low. What will happen tomorrow morning ?

If you look at RSI, can you see that the 3 lower lows on the chart have very distinctive bottoms on the RSI, what you may not realise is that on the RSI they are not lower lows and therefore they are showing us convergence.

We are in a down trend, and looking to go against the trend which is not normally in a "Dynamic Traders" psyche.

MACD is above the signal line and on the verge of crossing the zero line.

We have resistance at present on price with a EMA, which is shadowed by the stronger retail price index.

I have drawn a parallel trend line and a BOB with ESLT would be our chosen entry method.

Please do your own analysis before entering the trade.















Courtesy of Advanced Get / E Signal

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Trade with Passion

John Maher
Forex Analyst

Cable Tightrope !

Good Evening / Morning Dynamic Traders

"Better to have tried and failed, than not tried at all"

Cross = GBP : Daily Chart (Posted Below)

Long Term Trend = Down : Short Term Trend = Down

Having had a couple of days with profits on all trades, it was the markets turn to tell me, the market is ALWAYS right.

Trading with the trend, I was caught out with the 0900hrs 60 min candle, in one short sharp action, price moved up, taking out my profit at the time and hit my stop loss, leaving me annoyed ands out of the trade with a loss.

The trend was down, the indicators showed price down and the day candle still finished the day RED. What we had was intra day movement, related to news and will catch most people out if not understood.

On the day chart we still have plenty of air below the price and within the trend lines. We are at a RN at present, and stochastic s are approaching the "OS" area.

We have key news items out today regards this cross, please do your own analyst before entering a trade and manage your stops accordingly.















Courtesy of Advanced Get / E Signal


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Trade with Passion

John Maher
Forex Analyst

Short Cable

Good Evening / Morning Dynamic Traders

"Better to have tried and failed, than not tried at all"

Cross = GBP : Daily Chart (Posted Below)

Long Term Trend = Down : Short Term Trend = Down

The snowball is running down the hill, and it takes a strong brave man to try and push it back to the top. The trend is your friend.

With that in mind we had a red candle today, which was lower early in the day before pulling back this afternoon.

Today's candle is red, as I write the blog, and already has dropped 95 pips.

Price is currently through a fib breather level, with RSI under 50 pointing down.

MACD has now crossed under the signal line, and stochastic s are pointing down still.

Our confluences are saying a continuation of the down trend, however be aware of key news at 0930hrs in the morning.

Welcome to our new Dynamic Traders who finished their 1st webinar last night, I am sure you will now be added to our readership of the blog and I look forward to being a help. Like most things in trading "Patience" is the key, so do not jump in to trades on the back of your 1st lesson.















Courtesy of Advanced Get / E Signal


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Trade with Passion

John Maher
Forex Analyst

Check your "Cable"

Good Evening / Morning Dynamic Traders

"Better to have tried and failed, than not tried at all"

Cross = GBP : Daily Chart (Posted Below)

Long Term Trend = Down : Short Term Trend = Down

Tomorrow is a Bank Holiday in the states, so things will be quieter than normal, here in the UK we will be full of the financials again as we continue the "Banking Saga's" from the week ends press and discuss whether the FSA have done the job they were formed to do ? I won't be commenting on that one. What I am doing is choosing the "Cable" to follow this week, so where are we ?

Having printed the news, there is a couple of item on this side of the pond that needs observing over the coming week regards this cross.

A quick look through the different time frames show a down trend overall.

The Day chart gives us some support and resistance trend lines of which the price has been moving since October last year.

Price is currently at a Fib breather level, which looking at the indicators should continue its downward movement.

MACD is below the zero line and is currently crossing the signal line pointing down. We did have divergence prior to our last lower low of 23/01/09. Dynamic Traders take note.

Stochastic s are currently pointing down below the 50 line.

RSI is showing us the final part of a "Head & Shoulders" ?

We are being presented with a number of confluences. do your own homework.















Courtesy of Advanced Get / E Signal

Welcome on-board ALL those starting their webinars series tonight. Take plenty of notes.

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Trade with Passion

John Maher
Forex Analyst

What's going Down ?

Good Morning Dynamic Traders

"Better to have tried and failed, than not tried at all"

Cross = GBP : Day Chart (Posted Below)

Long Term Trend = Down : Short Term Trend = Up

Where does the time go ? I write for the last time this week and will not speak again till Monday evening as Monday is a holiday in the USA. I will bring to a close our week following the GBP and the insight into the MACD.

Early Shorting profits were clawed back in the afternoon with the Bulls fighting back. We have not yet made a lower low on the price and are finding resistance at the RN support.

If we break through this support, I suggest those readers who have done the webinar training to use ESLT on the relevant BOB. We are still trading between the trend lines indicated on the chart below and after bouncing off support, we have plenty of air above us.

Please note the obvious "Convergence" on Price vs MACD and with the moving averages remaining constant in the downtrend, we would have to wait for the MACD line to cross the zero line to indicate the possible change of direction.

I hope you have been profitable over the last week in your trading and learnt something in your training. As always please ensure you do your own analysis before placing a trade.
















Courtesy of Advanced Get / E Signal

Trade with Passion

John Maher
Forex Analyst

The Big Squeeze, Not Freeze !

Good Morning Dynamic Traders

"Better to have tried and failed, than not tried at all"

Cross = GBP : 60 min Chart (Posted Below)

Long Term Trend = Down : Short Term Trend = Flat

Firstly may I congratulate Hina on winning last nights competition, a job very well done, you did brilliantly , well done.

You would have got up this morning, read my blog, looked at the charts and thought "Missed It"

I mentioned on my blog that after 2 bear days we might see the bull upto the blck line I drew for you on the chart. The good news was we almost touched the line with an upmove of 213 pips. The bad news was at 0830 hrs this morning, the move had finished. So unless you are a late worker/learner you would of missed it.

Tonight I have placed the 60 min chart for you to look at. I have done this for a couple of issues. Firstly I want you to look at where MACD crosses below the signal line on the 9th January. Then 6 days later the MACD crosses below the zero line. If you check the EMA's you will see they crossed at the same time.

Since then we have had a steady decline in the price, having been in an uptrend previous. Remember we would not have these EMA's on the chart however crossing the zero line indicates possible change in the trend.

I have placed a support and resistance line on the chart, which gives us a declining triangle / flag which is being squeezed for a BOB.

Stochastics are showing OB and those from the webinar will be waiting a BOB and using ESLT as your entry to the trade. Remember the stronger trend is down.

As always, do your own analysis before entering tyour trades.
















Courtesy of Advanced Get / E Signal

Trade with Passion & have Fun
http://uk.youtube.com/watch?v=LiE1VgWdcQM&feature=related

John Maher
Forex Analyst

Peep oh, we can see you !

Good Morning Dynamic Traders

"Better to have tried and failed, than not tried at all"

Cross = GBP : Daily Chart (Posted Below)

Long Term Trend = Down : Short Term Trend = Down

I have continued to leave the EMA 12 & 26 on the chart so you can continue to see their movement in relation to the MACD line. I am sorry the chosen time frame is not showing a cross of the EMA which would happen after the MACD line crossing the zero line.

Whilst I do not use the 12 & 26 EMA to trade with, you will see how these help identify a trend. You may have your own chosen EMA's however the principle is the same.

Identifying the trend should be a 30 second decision, we are looking for the long, intermediate and short term trend. For Long term look towards your Monthly/Weekly charts, Intermediate your Day/60 min charts & Short term your 15 min/5 min charts. Stand back from your screen, look at your moving averages for guidance and decide if the trend is Up, Down or Oscilating ?

Go on make a decision, I dare you.

Last night I mentioned having some 400 pips below us till the RN, Todays red candle was 363 of them. I managed to get 230 pips on my trade, How did you do ?

Looking at todays chart below, I have left the Yellow trending channels mentioned yesterday, that we are currently trading between at present. You will observe a further two black horizontal lines, with the bottom one passing as support to yesterdays bar ???????????

I want you to stand back from your screen and concentrate at the chart pattern between the Yellow trending lines, What do you see ?

Where price broke the top yellow bar we have a "Head" with a "Shoulder" on either side !

If you had placed the bottom black line paralell to the bottom yellow line, and up to the start of the left shoulder as indicated, how strange yesterdays bar found support at that point.

I have placed the top black bar at the top of the previous bar to the start of the left shoulder, after a large move down we in general have a retracement.

Those from the webinars could confirm this by using the 2nd Jan to start your 123886, with convergence !

Will price retrace to the black line ? Interesting, let's wait and see. Price is up 79 pips as I write.
















Courtesy of Advanced Get / E Signal

Trade with Passion

John Maher
Forex Analyst

The Trend is your FRIEND

Good Morning Dynamic Traders

"Better to have tried and failed, than not tried at all"

Cross = GBP : Daily Chart (Posted Below)

Long Term Trend = Down : Short Term Trend = Down

I have continued to leave the EMA 12 & 26 on the chart so you can continue to see their movement in relation to the MACD line.

Some of you would have had a handsome reward of pips today with this cross providing a significant bear bar. With the moving averages having NOT crossed, the downward trend has continued and whilst not as steep as earlier in the chart, it is still providing lower lows.

I have placed some trend lines on the chart, from which you see the cross ranging between since 11th November. With the trend as our friend and heading down we have had 2-3 opportunities to explore possible 123886 within the range.

Whilst the MACD line continues to show convergence, it remains in Bear territory and any upward movement is a breather in price before a further lower low is established.

With a RN around current support, this would need to be broken for further weakness to be achieved. We have some 400 pips below us before reaching support at the bottom trend line.

Please do your own analysis before entering a trade, and if the trend is your friend, then your stop loss is family !
















Courtesy of Advanced Get / E Signal

Trade with Passion

John Maher
Forex Analyst

Cable on MACD

Good Morning Dynamic Traders

"Better to have tried and failed, than not tried at all"

Cross = GBP : Daily Chart (Posted Below)

Long Term Trend = Down : Short Term Trend = Down

Have you printed your News Items ?

Hope you all had a great weekend and are refreshed for another exciting week in the markets. I hope you get your pips this week as easy as United got the 3pts from Chelsea.

With the interest rate cut last week and not much effect having taken place in this cross, I thought we would follow it's progress this week.

To improve our education on trading the Forex, I am going to concentrate on the MACD indicator over the week.

MACD stands for "Moving Average Convergence Divergence" and the settings you should be using are 12,26,9. Like most indicators MACD is a lagging indicator, however unlike most others it can give us a powerful forecasting on price in the future.

We have 3 parts to MACD, The MACD line, The Signal line and the histogram.

The MACD line is the difference of the 12 & 26 EMA.

The signal line is the 9 EMA of the MACD line.

The histogram is the difference between the MACD line and the 9 EMA

The MACD line above zero is bullish and below is bearish. When it crosses the zero line we have no difference between the 12 & 26 EMA.

To illustrate this I have placed the 12 & 26 EMA on our chart and on the 2 occasions MACD has attempted to cross above the zero line, you will notice the EMA's on the chart are on both times touching. (Red Arrows)Whilst I can not show you on our chart, the signal line usually crosses the MACD line 6-7 days prior to the EMA's crossing.

When the signal line crosses over the MACD line, the histogram crosses the zero line. (Blue Arrows) If the histogram is positive, MACD line is above the signal line and when negative the MACD line is below the signal line.

The MACD's strongest quality for us is Convergence / Divergence with the price, indicating a possible change of the trend. (Green Arrows)

In summary from our Daily chart, We have a down trend for some time giving lower lows, yet the MACD line is showing convergence with price over the recent lower lows. We have the signal line crossing below the MACD line, which itself is on the verge of crossing the zero line and into a Bullish zone.

Are we seeing a possible change of trend ?

Will price bounce off the EMA's ? or give a further low ?

Do we have a confluence of events ?
















Courtesy of Advanced Get / E Signal

Trade with Passion

John Maher
Forex Analyst

Cable

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Source: Advanced Get

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John Maher
Forex Analyst