Thursday, November 10, 2011

Weekly Trading Update (November 11, 2011)

“Always remember that we get paid on the quality of our trades, not the quantity.” - Rick Wright


How do you determine a trend using the trend position and the price position? When making a trading decision, do you look at risk and remember that losses are inevitable? Do traders make sure that they aren’t wiped out by their losses thru a lack of discipline?

When trading, you need to take note of rising and falling trends. Rising trends are a sequence of changes after which the end value is higher than the starting value, and a falling trend is one in which the end value is lower than the starting value, and a sideways trend is one in which the end value is the same as the starting number.

Below is the summary of some of my trading activities this week.


Primary Trend: Bullish

This pair experienced a serious bearish move this week, following what seemed to be an uncertain market at the beginning of the week. The bullish trend still holds, although seriously threatened.


Primary trend: Bullish

Like its AUDUSD counterpart, this pair also experienced a bearish move this week, following what was a consolidation at the beginning of this week. In one of my analyses, the lower trend line was broken to the downside – something that poses a serious threat to the longer-term bullish outlook. The trend line represents one of the most powerful instruments of technical analysis.


Primary trend: Bullish

The price is still caught in an equilibrium zone because the outlook on the Aussie and the Kiwi is nearly identical. Looking more closely at the present, there seems to be more strength in the Kiwi than the Aussie, but the price would have to break the support at 1.2940 before a bearish move can become more pronounced.


Primary trend: Bearish

The bearish outlook here is still nascent: which means sellers may just be at the beginning of their domination of the markets. From the top of 1.4120, the market has fallen by roughly 300 pips. The market will never listen to you, but it will speak to you if you will listen.


Primary trend: Bearish

The critical situation on this cross remains. Even the price is trying to break the SMA 200 to the upside, whereas the trend is bearish. The SMA 50 is below the SMA 200. The ADX 20 is still around the level 20, something indicative of a somehow weak trend. +DI is above -DI. Could this mean that the infirm bearish trend on this cross would soon be rendered useless?


Primary trend: Bullish

On this cross, a bearish signal that tried to form last week was a good example of a false signal. With risk control, the false signal mayn’t be a big deal after all. The cross opened with a gap up this week, followed by some southward correction, before resuming its bullish course. If you happened to enter this bullish course at the right time, it could have made you look like a Cinderella in trading

Conclusion: Technical analysis tools have a good chance of revolutionizing the way we look at the financial markets. This unique knowledge contains insights that’ll take your trading to the next level as it shows you how to look beneath the surface of financial markets and spot the manipulations they are prone to.

I’d like to conclude this article with a quote from Joe Ross:

“The more you focus on honing your skills rather than merely making big profits, the more you will reach a higher level of skill… Don't fall for the conventional view of success as making huge profits even when you aren't psychologically fit.”

Your questions and opinions are highly welcome.

Thank you.

With best regards,

Azeez Mustapha

Forex Signals Strategist, Funds Manager &Coach

Senior Analyst

FX Instructor, LLC


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