Friday 7th February

Good morning all,

The sun is rising, the birds are singing and it's going to be a glorious day.

Just to summarize what I was talking about yesterday concerning the blue and lilac moving averages.
When the price is between these two averages you have a lot of shorter term traders attempting to go short.
At the same time, you have a lot of longer term players going long off the 4hr 20. This is what causes all the confusion in price action.

We saw a little trade yesterday going in our favour, then the price moving up 30, then down 30 again and so on.
There's nothing wrong with your trading or the system. That's just how the charts play out in situations like that.

Eventually, after the news and another attempted break up above the PP the Yen dumped almost 100 ticks, first breaking through the support line, then the 9.840 level I mentioned, then a further 50 ticks to MS2.

Did I trade it? Nope. It was out of my office hours and around big news, but take a look...

If you  had balls of steel you could have traded it, but as I say, around news is not really my thing!

The point I make is even if you don't trade every set-up, providing you pick the ultimate direction 6 or 7 times out of 10, then half the battle is won!

Anyway, enough of my 7am waffle. Let's move on to today.....

To sum it up.....GO BACK TO BED!

Really. This has dumped 100, the blue has crossed the lilac so plenty of opportunity next week to do some selling, but for the time being, it's a consolidators market.

Being objective, this is where we're at...

The red has a big gap to the blue. I cannot sell here, it's just too risky. IF the green can get above the red, that's an ideal scenario. Not for a trade, but for an indication that this fall will correct itself before continuing down.

See the PP at 9.820......If it get's back up toward that then I would update on the situation, but for now I am looking for a move up to there first before any further consideration.

BTW....I done some spring cleaning yesterday. I changed the colour of the RSI. Just like to do that once in a while. Added a weighted moving average also to help you guys read it a little easier.

I'm going to have some Marmite on toast and a nice cup of tea.

Remember non-farm today. Lot's of action later, but personally, it's usually a day I take off and head for the beach.

Here's my spot...