View: Blanks of the trader
Blanks of the trader
Having a run of profitable trades may serve not in the best traders interest, as with every profitable trade usually traders confidence grows sky high, and it takes no time to fall into trap of complacency. The most appealing symptom of that is probably effort spent for the analysis of the new setups. With a good run behind the back, the danger is to expect coming trades to be same successful as well and loosen up the criteria for the entry. That being said it is important to keep taking signals that system produces as unfortunately there is no control over the sequence of winners and losers occurrence.
Quickly recapping last week i had 1 setup completing, out of two that were under my radar. French CAC40 cypher pattern produced around +180 pips of profits which is quite significant for the usual 50-60 tick ranges on this market, it was not pain-free trade though as initially the trade was hanging in the loss for some time.
Looking at the next week, will continue with CAC40 index. There is counter trend long opportunity at 3670's area, which was tested twice with clear bullish divergence on RSI. Having all these qualifiers in mind, the current conditions of this market are overwhelmingly bearish, therefore this setup may be suitable only for aggressive traders or the ones that can handle at least 40 ticks stop in counter trend conditions.
On FX side both pairs that i am watching presenting good setups for the next week. EURUSD pair has potential AB=CD completing at 1.3012's area which is inline with 0.618 fib retracement of the main impulse leg up, looking left price action stalled at least for some time in this area, will be looking to go long from there with 1.36 targets still in play.
USDJPY pair is very close to complete local double top formation with bearish divergence, it also lines up with 0.786 fib retracement or last impulse down leg of the move. On the other side of the scale is at least 150 ticks of risk above 99.30's that has to be taken on board, that makes this setup less attractive from risk/reward standpoint. See the chart below.
That will sum up this week, have a good one traders!
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