View: Blanks of the trader
Blanks of the trader
As the title says i had literal evidence of how crucial patience is when considering trading setups. Very good lesson came up on EUR/USD FX pair last week where fairly wide anticipated reversal channel was wiped in a matter of two days. Not many expected that those levels will taken out so fast i guess, well done to the ones who had a discipline to stay away from getting short. What may be helpful in these kind of cases is having filter like ATR (Average True Range) indicator, that can serve as useful measurement stick for evaluating volatility.
Next week promises to be eventful as well, unlike EUR/USD pair french CAC40 index was drifting in the channel for a whole week. During that time previuos resistance area at around 3690's area had clearly became immediate support on 4hrs chart. Despite the noise all around ( "Tom demark sell world and soon us")technically the breakout to the upside is very likely in my book, so will be looking for a long entry with stops below 3690's.
The setup on DOW posted last week is very much in place as price action moved closer towards 13640's area, that served as pivot in the past. On a cautious note this market is technically very much bullish, therefore counter trend execution parameters should be chosen in case of taking advantage of this setup.
Back to much beloved EUR/USD pair as mentioned earlier the breakout from last week changed there was a case of change in dynamics of this market and it would make sense to look for long entries if area around 1.33's will prove to be solid support during next week. Unless the move up north was stop hunting excercise, very likely to see continuation the upside in the shortterm future.
Last but not least for this week is XAUUSD (Gold) pair. In addition to still valid bearish BAT pattern on 4 hrs chart posted last week, there is potential bullish Cypher pattern that took more concrete shapes last week. Looking at the chart the price action is very much sideways but on the verge of plummeting to either side. Regardless of the direction the most important thing is to take advantage of prevailing direction that likely to take place.
That will sum up my notes for next week, have a good one traders!
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