View: Blanks of the trader

Blanks of the trader

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One crucial thing that always follows the successful trades is focus and attention paid to the trading setups. During my monthly portfolio review was able to identify two markets that unfortunately did not match the general performance of other markets in portfolio, therefore had to say goodbye for GBP/JPY and AUD/CAD FX pairs for now. There was combination of factors that led me to this decision, the main one was that those markets did not net returns that could match the other markets that i have in my watchlist, as well as the number and quality of setups were not great either. One more thing worth mentioning about trading not the major FX pairs is the fact that spreads are widening big time especially during the weekend that adds for no good reason to the risk of the position held in those markets. Surely some brokers may have more favorable trading conditions for those markets than mine, again that adds to the point that each market must have separate approach based on trading system and conditions presented by broker. Having less markets to focus on will hopefully improve results on remaining instruments.

When capturing last week all 3 setups presented last week were profitable for traders who took advantage. Both ALSI and DOW hit target 1 at 0.382 fib retracement giving the profit ratio of at least 2. The setup on XAUUSD (GOLD) made even better return presented by the weekly sell off that took place. 3 winners out of 3 setups is great result for those who got involved. It was not the easiest ride as it was the case of mouse and cat game while chasing better price entry due to the fact that previous highs were missed by just couple of pips on XAUUSD for instance. Some more conservative traders who waited for retest of those highs likely missed the move. Again that presented valuable lesson by having sometimes not the perfect entry in terms of the price and approaching the market with "at the market" action instead of waiting for the market to reach limit order price at the peak. Very often once market confirms it's intent to go one way on another with  price action price runs away from anticipated entry levels giving the bad emotions of missing out on the winner despite having spot on analysis.

Looking at the next weeks setups will start with CAC40 index that tested it's major pivot at around 3580's area. If tested again at the start of the week will present shorting opportunity going against the trend. This market is clearly in the uptrend at the moment therefore this short has to be considered in careful manner, probably starting with minimal entry position size.

The area around 1710's served at support for the last 5 times XAUUSD (GOLD) tried to break it to the downside. The anticipation in case will get to that area again next week to go north from there. The general conditions are very much sideways therefore for the traders with bullish view on this market will be good chance to jump on.

Looking at the more long term setups, DOW came into my radar, as we broke recent highs on 4hrs chart, the next likely congestion area will take place at 13300's area. Harmonic AB=CD will complete at that point, despite missing on fibs confluence, this area proved as very major pivot for many times in the past.

That concludes coming week preview on my side, your views on those markets and feedback would be very much appreciated. Have a profitable week traders!


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