Browse Stacks: Patterns: Pivot Points: Blanks of the trader
Blanks of the trader
Relating to famous book by Mike Bellafiore last week proved to be good example on how much of a difference one good trade can make. It was first swing trade taken in the month of October and so far it netted about +118 pips of profit on long entry for CAC40. As far as other setups, EURUSD long entry made a turn earlier than anticipated, while GBPUSD long setup did not have enough strength in order to get involved in my book. The reason why this book came into mind is the fact that there is no need to execute a lot of trades in order to be successful, it is more than enough to have one good trade to have positive outcome for longer given period of time like month etc.
Moving to next week, given CAC40 setup is still valid in my book in order to get involved on long side. Although much more risk have to be taken on board, current price action is setting as very likely breakout to the upside. Recent highs of 4243's were already penetrated, based on where this market will open it is no brainier to go long if weekly open will be higher than 4234's in my book.
There are lots of technical and fundamental signs for EUR/USD pair to be topping out at least for nearest future. Despite going short would be against still valid bullish trend, if in fact this area will prove to be major reversal point, we can see very lucrative return. Will be watching 1.3612 area closely next week where bearish Cypher pattern about to complete. There are other patterns still valid on 4 hour chart for this market, but they are likely to be valid for next week rather than current one.
Finally GBPUSD pair has potential bullish Butterfly pattern about to complete @1.5873 area. Current price action has been locked in the envelope of 50 and 200 MA's. In case of USD weakness to be continued, this area seem to be very likely as good point for long entry looking to test at least highs of 1.6260's.
Last but not least checkout updated recommended books section for more concrete references and techniques on converting trading ideas into sound profitable trades. Have a good one traders!
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