View: Blanks of the trader

Blanks of the trader

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I had very good run on EUR/USD so far, the long breakout setup from 1.2960's is big time in the money, before the weekend close the total net balance of this move was about +430 pips. Without going much into details on pyramiding techniques, that kind of move can be used as textbook example on how this way of managing open position is utilized. Except that it has been quiet week in my portfolio watch list, which was significantly cut recently it terms of markets i am watching.

There are potential setups for the next week in remaining markets under my radar. Lets kick off with French CAC40 index as this market played mouse and cat games with my setups recently. Overall perhaps only big players could benefit from this massive move to the south from 4070's area. At the time it was huge counter trend setup that did not match my risk profile. There were couple of other setups on the way down, but unfortunately my short entries were too high and this market was diving south before filling me on the short side. Recent price action can potentially have one more shot on playing downside as currently this market is on the way to complete final CD leg of bearish Cypher pattern. There is also potential for bearish Gartleys, but it is quite early days for it so will be watching it in background mode in order not to clutter with more relevant setup at the moment.  

The area @3855's will be the one to watch is this market will get there.

Other setup is for USDJPY FX pair. Overall this market had increased volatility significantly recently. ATR ranges increased from middle 40's to middle 95's over the past week on 4 hour chart. This spike of volatility did not serve very well to unprepared traders, regardless of the trading time frame that kind of price action is dictating different rules of the game, at least temporarily. The area i will be looking at is 92.60 which served as major pivot in the past in confluence with harmonic 3 drives and AB=CD moves. However the fact that this setup requires around of 100 pips of risk taken on-board, as well as setup being very much against prevailing down trend will keep me watching it from the sidelines. Unless will see some kind of stall the risk if being wiped out with volatility remains high. Again this is perhaps setup for bigger players, see the chart below.

Have a good one traders!


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