The London Open - page 55
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A few people have asked me about my thoughts on correlation between USDJPY and the Dow Jones.
As mentioned in previous posts I consider Crude Oil to be the Chairman of the Club, with Gold the Manager who controls the players being the Major Currency pairs including USDJPY
I also like to visualise this 'Chairman' as having his sticky fingers in many a pie including the Stockmarkets.
See how the stronger Dollar on the back of weaker Crude gives impetus to the Dow Jones, who coincidentally is the CEO and driving force of the rest of the major Indices. Frankfurts XetraDax, Paris's CAC40, London's FTSE100, Tokyo's Nikkei225 and so on are all bossed about by the Dow, who I like to see driven by the opposing directiojn of Crude Oil at the moment.
Naturally this is not always the case and it won't last forever, but it's a very good benchmark to use right now as the snap-shot clearly demonstates.
Thanks For The Post It Is Really Useful
I have been asked that with such a 'demon' strategy why I would need to lower my standards and use a 5m chart for an entry point.
The answer to this is quite easy..........It's all about clarity.
Look at the 60m chart on the right. It's oscillating, in a non-trending market, either side of my moving averages.
Yes the 21 CCI has crossed but it's not clear-cut.
On the 15m chart in the middle it become everso slightly more obvious with my 84 & 336 (60m & 4hr) CCI's crossing the 0.0, but it's still quite daring, or at least looks that way.
However, on the 5m chart on the left its very apparent that there's a good trade to be had here.
There's even two possible entries on the 5m chart. One prior to the 60m 50 which was worth a 'punt' with a 15 pip stop and a second after the break of the 60m 50 (dark blue) which went another 80 pips.
On both occasions on the 5m my 5m20 is bove the 15m20 which is above the 60m20
This is why I use these multiple timeframe charts/indicators.
Zoom in for a closer look and the truth shall set you free (according to David Icke, anyway)
Morning all,
Welcome to a new week, and a few new readers which is nice to see. Thanks for your support.
For the newer readers amongst you who are unfamiliar with my reports. I usually Start with the Crude and Gold then move on to the Currency pairs.
So lets get cracking. 60m Crude and Gold telling me that they are ready for more falls, BUT we must be very careful here or else the plan for the currencies goes pork-bellie-up.
Both Crude and Gold are actually above their pivots which is indicative that we could see some upside this morning session.
Hmmm, interesting. There seems to br so much resistance above on the Gold that a break looks difficult BUT the 21CCI is up and on Crude it is trying. Crude fell almost 2000 pips last week so a small pullback to the 60m 50 at least could be on the cards to $131.50 from the current $129.50 IF the pivot holds. It's not looking overly attractive on the shorter timeframes and would much prefer to trade with the 4hr trend but it's doubtful there will be a huge amount of action until this afternoon .
I'll be waiting for a clearer direction but we all know to do in either curcumstance.
I was long Cable last week just prior to crude dumping and I did not hesitate to take a measley 7 pips from the trade.
No less than 10 minutes later Gold followed suit and my lovely long position was now more like a short, some 50pips lower.
Forget that I want 30, I want 50. If crude starts bossing Gold about, play it safe and get your cash in your pocket.
As I slightly favout Gold & Crude to the upside this morning, I am also touting a weaker Dollar.
On he currencies that would usually mean looking for a long position on EURUSD and GBPUSD and/or shorts positions on USDJPY & USDCHF but that's not telling me anything either.
Euro lookis like it wants to move a bit higher with Pound looking m,ore likely to fall. USDJPY looks like it wants to move higher whilst USDCHF looks like it want to fall.
So a bit of a mixed impression, but if I zoom in to the 5m. I can see a little Dollar Weakness creeping in.
My 15m 20 has crossed the 50, so a fall below 106.65 might pave the way for a retracement play on the USDJPY. It's gone 300 pips in a straight line pretty much and will have to pullback at some point. Just as soom a Gold and Crude make up their minds we'll know whether that's going to be today or not, but I won't be buying into it at these levels.
Euro is looking pretty good to the upside on the 5m athough its moved a bit already. Swissie to the downside is you pick your entry right.
Also worthy of a mention is the CHF PPI numbers out in a couple of hours so be careful with the last 2 mentioned possibles.
Without GBPUSD agreeing I am tempted to leave him on the sub's bench today.
Techinally it's set for a fall, but IF Crude and Gold find support that will possibly limit the downside.
IF they don't find support then this would be my best play.
Rememeber my golden rule. Stay pro-active and trade the currencies in accordance to what the Chairman & Coach are doing
Have a good morning all. I'll be back before Midday.
This is the whole thing I am talking about on this thread and am so glad it has gone according to plan again. Especially on a Monday
With Gold and crude finding some support as suggested in the Morning post, USDJPY did fall a bit and EURUSD did move to the upside.
There's 4 possible trades here with over 250 pips profit had you read the charts with the correlation as I do in this way.
Notice the retracements on the fast CCI giving the signal on each play. Great little weapon !!
I only took the JPY but no harm in that.
That's the London session out the way. I'll be back later for a New York preview.
Hi guys looks like another short on usd/jpy on the cards, another bite at the apple? great post this morning dc, well read
Hmmmmm. John I'd keep my pips in my pocket for the moment and wait to see what Crude does. She really needs to break the R1 level to allow Gold to rally too, but if and when that happens another play on the Yen could be a good goer.
Pimpmagic this afternoon at 2 guys for all interested participants.
We'll cover the 4 charts discussed in a previous post for those struggling to keep up with 10 or using just a single screen.
This morning we all saw some Dollar weakness coming into the market.
Has there been a sudden change in sentiment?
Who knows. Gold is retracing, more than it is falling and the same applies to Crude. However, if these two do continue to drop, adding some je ne c'est quoi to the Dollar I'd be interested in a little go on the Swissie.
Remember the rules about the fast ? We need to wait for a retracement and for the M.A's to hold, then when the CCI crosses back from negative to positive there could be an opportunity.
Gold AND Crude need to continue to fall through their respective support levels, but worth keeping an eye on.
Hi guys,
My first post on this forum. Just got introduced to this place. Just last week I set up my charts with your setups,and have been following them.
Great work, plus Im just going thru previous posts. Why did I not find out about this great mini community earlier?
Still, never too late, I guess. I'm going to be a regular here, so hi once again.
Regards
Pardy
Hi all
Anyone grab the crude..Just got back from lunch and got kicked into crude at 131.15 until 131.90 T/P.
Look at R1 on 15min and 5min for perfect breakout.
School at 2pm today.
Dan007