Browse Symbol Stacks: CAC: Blanks of the trader

Blanks of the trader

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This stub will focus mostly on one market that is currently under the focus of many traders, namely EUR/USD pair that is presenting many setups as of the recent. Just to quickly recap last week thuogh short entry on CAC40 Shark got stopped out, thankfully it was not wild breakout that gave opportunity to take hedge when resistance became support. Other EUR/USD setups became invalid as market went higher initially before diving south at the end of the week. 

Moving on to the next week, the only potential setup in my watchlist is on EUR/USD. Last week price action formed another Garlteys pattern. I had my entries at 1.2991 that did not promise any good outcome as even more selling continued after the entry. What i could pat myself on the back is the fact that my stops were low enough in order to not being taken out. On the chart below you can see the progress of this trade so far.

As the week was about to close the pair started reversing and critically 4 hour candles never closed below pivot of 1.2955. Regardless of the outcome if this trade the first test was held successfully as the smart stops allowed me to stay in this trade while it unfolded to be still valid Gartleys due to the fact that earlier mentioned pivot was never broken. There is very good chance to get involved in this trade at much better price depending where the market opens after the weekend. If 1.2955 pivot will prove to be solid one and end of last weeks action south was just a dummy, longs in the area below 1.2990 will make a lot of sense in my book. Otherwise if this is sustained moved south new shorting opportunities may present themselves at the pivot area.

From technical perspective this Garlteys pattern is not an ideal textbook one, as AB=CD completed at 0.886 rather that 0.786 retracement on XA leg. Very often though these kind of pattern present better risk reward opportunities for traders due to the fact that pattern completion is closer to X, so less risk has to be taken on board when getting involved.

Coming back my current involvement in this trade the targets had to be readjusted from 1.2935's area not 1.2991's like initially anticipated, making readjusted target 1 not so attractive to take profits of. Adding to it will be looking at option PUT's at initial stop area in order to protect the downside due to the fact that this market has quite some legs north to do before any good R multiple profits can be taken of it.

As of other markets in my watchlist portfolio, it is formation time. Will be enjoying F1 action for the rest of the weekend, have a good one traders!


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