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If you were long over the New Year Weekend then you will have almost certainly enjoyed today's Market action with huge gap-up open's taking price outside of the previous trading range. If U.S Indices close red today then we statistically have a possible topping signal as SPX displays a number of gap-up opens with red closes at or near previous swing highs. However, the point of this post is really

It's unfortunate that the AUD:CHF swing short was stopped out for a 100 pip loss making this trade the 2nd official losing swing trade since blog inception. As and when time allows I will re-evaluate the whole set-up that originally got me into the trade in order to find ways of avoiding a similar loss, but in all honesty, I've taken many winning trades from almost identical set-ups so might have to just call it a bad trade.

Isn't it funny how Weeks have gone by and I've struggled to find anything worthy of posting, then all of the interesting set-ups arrive at once! So, just before signing off for the evening I just wanted to present this FTSE 4 hourly chart. It can be mentally challenging to enter trades like this when the press is plastered with bearish news, but the last couple of years should have conditioned us to ignore the news because we all know, no matter how bad the news

GBP:CAD has traded a choppy range for over a year now bouncing between 1.5300 and 1.6400 giving regular bursts of up to 1000 point thrusts throughout this time. We now have a situation where it's back at the top of the range so we need to get clues on what the next move is. Historically you can see from the chart that the extensions to the limits of the range were not quite as powerful as this current move, furthermore, it can take days or even weeks to finally roll over at the limits of the range. So we could be slightly premature in hoping for a trade as early as this week, but it's certainly one to be aware of.