Browse Symbol Stacks: CAC: Blanks of the trader
Blanks of the trader
Last week had a sense of cold shower after a great run on EUR/USD the market took a breath stopping me out on my long for about +300 pips of net profit. Also took a loser on another long setup where CAC40 index completed Cypher pattern and blew south through it without any sign of reversal, took about -30pips loser on that trade. Despite this "negative" outcome i was quite happy as the actions taken were clearly according to trading plan, when the market curve goes against current positions all trader can do is use stops to protect the capital. The major advantage for technical traders having clear picture of price action in front, is clarity of actions to be taken dictated by what trader sees on the chart, namely trading chart not cluttered with unnecessary indicators etc. If taking more rigid approach, when some price study or indicator is not part of trading plan,it should not be on the chart at all. That's quite bold statement i guess but is definitely pays off whether trader is "right" or "wrong" in terms of setup taken. It takes time and lots of hard work in front of the charts in order to achieve it. As one of the well known figures said we must work hard to keep it simple, very much relevant words in trading profession.
Looking ahead for the next week couple of markets will be watching closer. French CAC40 had a shift to the downside last week. There are two potential Cypher patterns setting up there. More recent one completing at around 3686's area and wider one that is still emerging to complete at around 3750's area. Those may be good bearish setups in what appears to shape as bearish market.
South African ALSI40 broke another resistance level, nothing seem to affect it for at least more or less significant correction. There is another setup for trend followers at around 36370's area that may be completing at the start of the week. Both 50 and 200 MA's pointing up with price curve above presenting good opportunity to get involved.
On FX side there is EUR/USD potential bullish setup where BAT pattern lines up nicely with 0.382 fib retracement of major impulse leg from 1.267's area. Very clean setup if will get there, looks almost as too good be truth. The area between 1.3327's and 1.3252's will likely to serve as the end of correction.
The double pattern setup on GOLD(XAUUSD) from last week is still valid, however market was very hesitant last week and if highs of the current channel will be broken at 1684's area the bullish setup from 1640's will become invalid.
That will sum up this week traders, have a good one!
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