Love internet, no question about it. But sometimes it can be so frustrating when things go wrong and there is very little one can do about. Last night, for example, my other website, www.spectrumforex.com was hacked. I’m not even going to say by whom, because why spread their cause any more? They certainly haven’t gained new supporters today. Turns out servers of hosting company were compromised, not so much the site itself. After bunch of phone calls and what seems like eternal waiting time, services were restored. Not real damage was done, but what if it was trading platform, with a lot live trades at the time? Some brokers were attacked in the past and likely will be again in the future. FX Madness is hosted elsewhere and was not effected.

Now that this problem is fixed, trading takes front stage again. Last post, New rules, covered many currency pairs. They were discussed looking at intermediate term, 4H charts. With every single bar/candle taking 4 hours to create, any move sought using this time frame takes some fairly long to develop. This always has be taken into account when planning a trade, having at least rough estimate about expectations for the length of holding time. I was looking for additional price development before actual order is placed using AUD-JPY. Wanted to see one more support point established in the at around 83.25-83.30. Markets obliged this time.

Opening had a gap, too small to try take advantage of. Market quickly reversed, creating what I wanted to see. Now a firm order is placed to sell at 83.19, with a target of 81.00. No guarantee that this will happen, but the more reactions price has at any one support/resistance level the more important it becomes. It also indicates that market “wants to” test this zone. If a breakout through just such level happens, it has higher probability of being fast and strong. I will  return to this chart in next update and have some more observations.

The other Yen pair mentioned yesterday was NZD-JPY. It opened with a gap, which was wide enough to try to trade it. Unfortunately, price reversed immediately, so there was entry point of any kind to get in on. I don’t simply buy or sell at the open, hoping for filling the gap. Must see some price action first. But in this situation fading the gap made sense and that’s what I did. With entry at 66.84, trade produced 24 pips, after which new low was made. Just like with AUD-JPY, this becomes new sell order at 66.45 for trade using 4H charts.

Pound-Swissy also developed decent gap and here I decided to “work it”. This is a snap shot from the time of trade. Expectations were for about 60 pips.  Price started to drop right right away and things looked good for a while, but it wasn’t to be. 100 SMA provided support, pair rebounded. Later on another run on the lows took place, but once again price stalled at the same level. I got out with 32 pips.

It is late in the trading day and I don’t carry gap positions past this time. If it is not closed by now, no way of telling when it will happen. Longer term chart of GBP-CHF will get more attention in coming posts.

To round up last update, few thoughts about EUR-CAD. Very little movement happened today, with price drifting lower. I have a firm buy order at 1.4815, above the minor high. At the same time I’m looking for candlestick reversal on this chart, below current order. Risks would be small, 50-60 pips, with the same objective of 1.4950. Need to see 2-4 more candles, though, meaning 8-16hours. Plenty of time.

Mike K.