Winding up.

Hi Guys,

Hopefully you folllowed the Ninja and were able to weather the initial pull backs and stayed with the trade to the 800. I think Rob is going to blog the results so I won't say much more except to say that his Dingo trade still looks good to me, in fact, it looks even better and whilst I wasn't in the original move, I will be selling this pair below .746. Interestingly, the highlighted section of
the chart looks very much like the Ninja pull back if you compare the two.













Looking elsewhere, the JPY recovery has returned a lot of its pairs back to the middle ground, and we find Yippon swinging around its 1 Hr 800. I don't really want to trade it yet, particularly going into a Friday, so I will be looking at it over the wekend for possible set ups next week. Cable appears to be setting itself up for a fall, although I do feel it has plenty of energy left and I will be looking for that to play out next week. However, I am intetested in GBP/CHF, who has been sitting in the corner quietly minding its own business while the Yen pairs have been leaping about...

GBP/CHF

From the top..













The pair has been rising steadily with measured suppport but has been readily turned back three times at differing overhead resistance. It is now forming an ascending triangle, although it is difficult to identify the defining lid level. The pair is also sitting on its Daily 62 EMA at 1.681 and has traded around it for 5 days.













Having made a spectacular descent a week ago, the pair has been ranging in a fairly broad range for the last week and has failed to make any convincing moves in either direction. As you can see from the 4hr chart above, it has also been joined by its 800SMA and to keep the party going, the 62 and 200 have also joined hands. How cosy for them all.

This extends to the one hour chart.













Well, it would do if my platform would show the 1hr 800, for some reason it knows how much I like it and refuses to show it. Taking my word for it, it is at 1.68621 between the 62 and 200 and the pair has traded around it all week.

Given that this is very similar on the 4 hr chart, and that it has remained stuck to the daily 62, I am very interested in trading a breakout of this range. The large yellow box marks the recent extremes of the price range, while the white box within a box marks today's pinbar or doji which has formed and offers a more aggressive entry to this trade (thank you Mo). There is also a rising support line (riser) underneath which would, if broken, provide further confirmation.

I will buy or sell the pair on a break of the white box and will be targetting the top of the yellow box initially, before setting my sights on 1.7 and the various lids of the ascending triangle thereafter. To the short side, I believe the target is the big daily riser, but that still offers about 170 pips. If the pair turns and prints a convicted candle back inside the box, I will be closing the trade.

Good luck,

and Trade Safe!

Tom