Browse Symbol Stacks: ALSI: Blanks of the trader

Blanks of the trader

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Market volatility is something that scares most of buy and hold type of traders/investors, however is very welcomed by short to midterm type of traders. Normally it is triggered by some sort combination of news events. Particularly last week it was related to the Eurozone and situation in Cyprus. Well done to traders who took advantage on EUR/USD Cypher pattern and got filled prior to the weekend. The market gaped more than 120 pips to the south at the open. Having said that i would not advocate for this trade to be blueprint to follow, as with this type of events it could open higher, causing potentially substantial loses. Due to same type of events Cypher pattern on French CAC40 posted last week turned out to be loser netting about -30 pips of loss, after initial news storm was consumed by market participants it went "right" direction, however from my trade perspective it was too little too late. Continuation of move south on South African ALSI40 netted +630 pips of profit on target 1 stalling close to target 2 at around 35300's area, this trade is clearly in the money, the question is whether this move has more legs and whether it could be the reversal to the dominant current uptrend with 50 and 200 MA's very close to cross. Bearish Gartleys on Gold (XAUUSD) got filled at 1613 and gave some pain initially, however never touched the high of X leg at 1620's, it closed at around 1610 before the weekend in the middle of my target 1, giving me the chance to hedge this position with 1630 CALL option.

With Volatility index VIX being at it's lows recently, very likely to see some more action to the north that is likely to cause more opportunities for swing traders like me. Fundamental news from Europe are dwelling about uncertainty with some "defining moments" for the countries decisions being made during the weekend while markets are closed will surely cause the gaps at the open again. Particularly EUR/USD FX pair is affected by those news. Will be watching this pair closely next week as i have two bearish setups on the radar. If the market curve will push up north next week BAT pattern will be completed at 1.3061's area. Another emerging pattern is bearish Shark to be completed at 1.3140's. Due to the reasons described above will be looking at the market open before setting any orders or perhaps waiting for tommorows morning to see where those initial opening candles will complete.

Another market to watch next week in my portfolio watch list is USD/JPY pair. It has bullish Gartleys to be completed at 93.36 level. To be absolutely fair it is not ideal textbook pattern as AB=CD completes at 0.886 rather than 0.786 fib retracement of XA. This deviation however provides clear 1:2 risk/reward.

This will sum up this week, have a good one traders and watch out the gaps!


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