Update 24 September 2014

Welcome to brainyforex newsletter update

[Market Update]

Last months update included WD Gann's observation that the US Dollar was bullish because July's price closed above the prior month - June high, in addition to it exceeding the prior quarter high. From then we saw the US Dollar continue it's climb to a very high point, where it's sitting right now.

Tracking the US Dollar is helpful for currency traders as the major currency pairs are paired against the US Dollar and this provides a further indicator as to direction and strength of these other currencies. ie A rising US dollar puts downward pressure on the following EUR/USD, GBP/USD & AUD/USD while creating upward pressure on USD/JPY & USD/CAD.

Legendary trader WD Gann also noted that resistance is located near prior year highs and lows. As the US Dollar is hovering around old prior year highs, we can expect difficulty for price to move much higher from this point without it moving sideways for some time, or making a temporary downward retracement before continuing it's move higher. It should also be noted that as a Quarterly cycle is upon the overall markets right now as at 24th September 2014, this gives further warning that the US Dollar may have a high degree of difficulty moving too much higher / too fast from here. Maybe only a few days higher at best from here before entering a sideways pattern or a temporary downward retracement phase.

WD Gann would say that when markets are at this stage (approaching old time highs) it's best to be cautious and not get ahead of the market, but rather wait and see if it can break higher. Once the old highs are broken to the upside, price has a high probability to continue higher.

[Robot EA results]

Of note, Forex Warrior EA has had a major setback in it's 5 months straight profitable winning streak. As Forex Warrior is a grid trading system it had been expected that such an event could take place within a 6 month period of time. After 5 months, just one bad week of a straight fall in the GBP/USD saw all of it's 5 months profits taken away. Such can be the case with grid trading systems.

The official trading results on Forex Warriors website also shows over 6 months of profits eaten away by the GBP/USD recent fall. Officially, this robot is not written off, it will keep trading the owners live account to try and recover this setback, but as for our testing at brainyforex we will cease testing this system. At least we can see that the live results reported by the owner are true. For grid trading enthusiasts with large account balances, this system is still worth watching to see how it does into the future.

Till next time

Regards

Fritz Gewerth
www.brainyforex.com

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