Browse Stacks: Patterns: Pivot Points: Blanks of the trader

Blanks of the trader

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At this time of the year it is difficult to ignore fundamental news that are affecting major markets with high liquidity. Much more transactions will likely to happen changing virtual hands over coming period. Well done to traders who took advantage of CAC40 aggressive setup from last week, the zone that was identified proved to be the upper barrier from which initial sell off had started fueled by the officials comments. Other setup on EUR/USD did not take place as this pair had wacky action back and forth during the week.    

Will kick off with S&P500 index that was introduced recently to my watchlist. This market is clearly not in the bullish mode anymore, since initial selloff the channel had formed with upper part at 0.382 fib retracement of initial down leg. Given the current sentiment it is more likely that this channel will be broken to the downside rather than upside. If the price would get to upper channel level at 1654.5's area would be a good place to go short in my book.

EUR/USD pair dominates recent stubs and to be fair proved to be the most attractive market to trade so far this year. In the current sideways sentiment many traders can find lots of profitable setups given that volatility is something that participants of this market cannot complain. The major pivot point at 1.3039 may be hit next week, providing good opportunity to short this market at this area. Having said that the strength of this signal is not overwhelming in my book, so proper position sizing has to be adjusted if decided to take advantage of this setup.

Finally USD/JPY pair has been pretty much in line with major US indices recently. If taking correlation into decision making when trading this has to be seriously considered before getting involved with this market. Anyway from pure signals standpoint the is potential bullish BAT pattern at 98.86's area. Again it is not ideal textbook pattern as fib ratios do not quite line up at the same point, however R multiple ratio is very attractive than can make this setup worth taking in my book.

This will sum up this week. Have a good one traders!


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