After seven years toiling over charts, plotting / scheming and analyzing markets..The Kongdicator is almost ready!
I’m extremely proud of this….just not “quite ready” to release it to the public.
I implore you to stick with the free trading information at the blog www.forexkong.com for just a short time longer, as I finalize the programming and get this thing finished. It’s been an incredible amount of work, and I am hell-bent on providing the best trade indicator / service I can!
Hang in there followers. I love you guys, and your support has been incredible.
The Kongdicator will simply work like this…..seven years worth of market insight and knowledge all wrapped into a single indicator / service that will simply “apply” my technical trade strategy to a varied range of charts.
Ultimately I will allow users to add their own symbols and assets…..dropping The Kongdicator on’em and watching the trade signals fly.
It’s gonna be great gang…so please sit tight…..enjoy the free stuff for now and get ready to trade with Forex Kong’s Kongdicator!
Obviously we are right in the timing band for a “swing low” in USD ( you already know what that is ) coupled with the bullish hammer in yesterday’s candle.
I’m in short EUR/USD as well GBP/USD – both picked up yesterday / overnight.
These trend changes don’t have to “shoot to the moon” the day of entry, as our beloved friend “sideways” can and will – always be a factor but…..if you’ve staggered your orders ( this being my first – very small order ) you can sit through the chop a day or two if need be….wait for a larger move, then catch an intraday pullback for your second shot.
It remains to be seen as to whether USD will generate a large enough move to dictate / suggest an intermediate bottom is in, but this looks extremely low risk / high reward short-term.
You can only trade what you see in front of you and “speculate” about the future. I have a very difficult time formulating “any” long-term LONG USD ideas, but that’s firmly based in my belief that this entire thing is gonna get wacked hard ( and I expect USD to get smoked as well… )
In any case….this is why we call it trading and not investing right?
The U.S Dollar likely has a few more days of downside before petering out and completing this last leg lower, so you can feel free to hang on – at least another couple of days short.
It’s quite possible that this last leg down may mark “the end” of an intermediate down trend, where in the bounce ( and possible trend change ) could be quite dramatic.
Myself…..I’m going to close my few open positions over the next day er so…..then consider “mission accomplished” short / medium term shorting USD.
If indeed we see an intermediate cycle complete – a full stop and reversal in USD related trades could soon provide another “easy trade” in catching it so early. Obviously pairs such as EUR/USD as well GBP/USD will provide fantastic vehicles here, as well as long USD/CAD and USD/JPY ( but I’d be sure to really wait on these ).
So you see? This is traaaaaaading. Trading yes. Not beating down on The U.S Dollar like I give a rat’s ass about one particular currency or another. This is making money in a market “regardless of direction”. This is charting, this is macro economic analysis, this is timing – this is art, not some bullshit rhetoric aimed at keeping you invested and ultimately cleaned out.
You can do it…….you’ve just got to turn your biases off. You’ve got to learn to think for yourself, and filter through the noise.
Tough call here today as I’ve already exited the long held “short USD trades” but….
Have now been picked up “again” with a few limit orders place under last nights action.
This is what we call a “momentum trade” and it’s pretty straight forward. I’v suggested it 10 million times in the past. If you’ve been unwilling to take trades as early as I do…then “hold” through days of sideways chop – I can’t blame you.
Conviction is key, and in today’s trading environment it’s very difficult. I encourage you to “man up” about it ( as this is likely going to continue ) and keep trading small.
You need to stay in the game to make a living doing this. You need to learn to put “greed and fear” in their place. Trading small is the #1 way to do it as. A single loss here and there shouldn’t affect your account in such a way that you can’t continue. If so……you are trading to large.
So it’s another “failed cycle” in USD with likely 3-4 days left before it bounces – where more trade opportunities can be found.
If you are nimble enough…do what you can to catch a couple more days action…then we will be looking for a bounce to either re-evaluate OR enter short again.
A little wishy-washy here today – I know but…please appreciate I’ve had this trade running for weeks now and only recent hit pay dirt. It’s a little tough to tell you “get in! do it you’ll be rich!” as a large part of this trade has already passed.
In this environment you need to have both “conviction” as well as a “larger /macro view” in order to trade through the chop.
The U.S Dollar should finally break support here soon – after a continued trade sideways these past few days.
Sideways sucks….we all know it, and it’s near impossible to create any kind of “alert” that can tell you ” get ready for x number of days or weeks trading flat”. You can’t beat it. You can’t win believe me……I’ve looked at it from every possible indicator / angle known to man….and I’m a freakin genius.
This is why you learn to trade smaller.
I’m on hold gang. I’m holding short USD positions across the board and will look to load up ” big time” once I see support broken…then a bounce ( as the retail gang will load up too early ).
I wish I had more for you but this is where we are at. A market that will not go higher, but will do all it can to smash those of us with “short intentions”.
Dollar down. Stocks down. Yen to the moon and wide scale economic panic coming soon to a theater near you.
I’m getting back on the “short train” with USD as the “6 day long suggestion” has obviously run it’s course.
This daily cycle looks to have rolled over as early as day “3” so once again we are looking at a left translated cycle – following the previous failed daily cycle so…….down we go.
It might be a touch late to jump into pairs such as GBP/USD or EUR/USD so I would suggest waiting for a small intra day pullback “or” placing limit buy orders “above” today’s action and waiting to get picked up on momentum.
As much as all of you can appreciate my long-term view of the US Dollar – It’s bounce time.
I still expect further movement “lower” in USD but see that we are clearly on “Day 1” of a new daily cycle. The daily cycle in USD usually runs somewhere around 18 days, and in this case ( being that we expect a failed cycle ) I imagine things to top out on ( or around ) day 6-8.
I’m not taking these trades, as I just cashed in on this most recent leg lower but if you are so inclined then I would suggest.
Short GBP/USD with stops a good 50 pips above 1.43
Short EUR/USD with stops above 1.14
Long USD/JPY with stops below 1.08
And maybe even a flyer on Long USD/CAD with stops below 1.0750
A good 5 days should provide you with ample room / time to put some money in the bank, but much longer than that and you’ll be seeing my next entry SHORT.
Markets are a gong show of complacency these days, and in all…..are difficult to even debate. It’s my feelings that the entire year of 2015 has been spent in “distribution mode” while the big boys hand over the bag to unsuspecting retail traders. I can’t imagine it lasting much longer, but of course you’ve got the damn American elections coming and it’s always tough to gauge.
Looking relatively short term…..I imagine when my next USD Short kicks in we’ll be getting close to May where the upside in risk is clearly limited. We’ll take it a couple of days at a time but…. can’t imagine much in the way of profits buying stocks “anywhere” in here these days.
Protect what you’ve got, and don’t go buying the news…now is a time to be lightening up – not loading up!
Silly people clinging to their television sets, clinging to their currency – still clinging to the ridiculous notion that “everything is going well”.
Straight up…..anyone suggesting that you “buy” is likely a banker, a broker or some dumb ass blogger with a single strategy ( or total lack of strategy ) appealing to you on the only level they can.
The notion that “bears are negative” and bulls are “positive” is completely and totally ridiculous as this is a “market” that trades in both directions. If you can’t develop strategies for the “red candles” how on earth do you possibly think you can be successful? Just buy and hold? Just “buy” cuz you are “optimistic about the future”? Dumb.
I’m as optimistic as it gets. Building my spaceship, saving my pennies for the liver transplant I expect to get somewhere down the road..plotting my investments in Graphene and spending my spare time plugging away at the latest developments in physics. The future looks amazing! But what the f#@k does that have to do with making money in the markets?
Blind optimism has no place here. It’s actually pretty irresponsible.
Since the vast majority of you don’t even trade Forex, it’s very likely that you lack proper context. If you dig back into the blog, you’ll find countless references to the fact that “currency markets lead all other markets”. Pretty straight forward considering that you need “money” to buy stocks so…….there it is. If you’re watching the money – you will always be one step ahead.
So what’s the deal with my USD Short Trade?
The deal is – it’s been 8 straight days since entry, and the trade has been amazing.
The US Dollar has absolutely cratered against it’s “printing partner/funding currency” the Japanese Yen. Didn’t hear too much about it in the news? Not surprising.
USD/JPY has fallen 1700 pips ( yes that’s right – 1700 pips! ) since markets topped out some months ago., and is quickly approaching “intervention territory” as far as The Bank of Japan goes. The huge move in Japanese Yen – a Tsunami for the Japanese economy.
I’m banking profits, as well letting a couple of these trades run with a tight stop as the money has already been made on this recent “leg lower in USD” but don’t be mistaken.