Good point, especially to the downside with the previous lower pivot just a few ticks beneath; I'd wait for it to drop below that first if shorting. Going long though, there might be enough room for scalping but I guess it depends on what you're looking for tick-wise .
The following user says Thank You to Fu510n for this post:
Despits the dismal range this week, I watched the Ym today and saw some nice tradeable patterns. Ill be adding this index to the journal as I do trade it.
Left to right.
We see a nice swing up in price coming out of the NY open heading to yesterdays open. Price stalls short of it. Makes a bearish reversal pattern (not enough to trade alone but a clue) Makes a LOWER SWING high - this hooking pattern is a great tradeable common pattern and easier to spot on renko charts IMO. So we would look for this to happen around major supply / demand areas, of course. The move down on my Renko chart would have been untradeable had the order not been placed ahead of time. Because price fell 30 points in 60 seconds. Makes you sick doesn't it. You can trade this a couple of ways, trade the ledge of the lower swing high. Another way to trade it is to take the bearish reversal pattern that forms on the Lower swing high. vice versa for the up moves. Make Sense?
Second trade was the FB pattern at around 11:15 wher price broke the pattern cleanly move up to the 00 level (13100) and then retested the break of the Fb pattern. Second entry if you wanted it. Price ultimately challenged the previous swing where we were looking at the hooking pattern, and has since drifted back down.
So even, with not great daily ranges we can still find trades if we think clearly. I do about 10percent of the time. lol.
If you have any questions please don't hesitate to ask.
Most of the trades I posted had a positive result on Friday which brought my week positive. Overall im up roughly 100 pips for August. not great, but not negative so Ill light a candle today and enter the week hopeful.
Its Sunday afternoon for me and my favorite part of the week- chart review. My attention was drawn to the euro 20 Renko.
I have on the chart 20 Mean Renko Bars, and jsTsibblines which is an indicator I found here on BM elite section downloads. The best 50 dollars i've spent, truthfully.
Starting with the coral dividing line we see this weeks price action. I want to point out several things. We essentially see three pushes down, what's interesting to me is that all the pushes down are roughly 100 pips. I have the fibs drawn on the first push down, then label the other pushes down with "100 pips in white text" Concerning the relevance of the FB consolidation pattern we see price fall into the previous FB range and basically fiddle around "loosely" in that area, i would consider that area the 2250 level to the 2300 level. Hardly tradeable but interesting how an area of consolidation can be a precursor to another area of consolidation. Taking this into a tradeable / analytical metric will we see a final push down from 2312 into the 2212 level which happens to be a consolidation zone dating back to the 2nd of August????
The way this chart sits certainly gives the "look" of another hooking pattern down. This of course is highly speculative. But what I love is the symmetry of this price movement and the very easy identifaction of consolidation zones, like the FB pattern where price seems to come back to and bounce or start a new fresh move in the other direction.
The most fascinating thing on this chart to me anyways concerns the fib level I drew on the indicator. If you look closely, the fibs on the indicator mirror the fibs drawn on price action. So that - price retraced on the indicator to the 78percent level - and on the matching candle of price action hits the 78% level at the exact same time. Pretty cool.
To me the Euro is really directionless over the last two weeks - so I am up to trading both ways.
I hope some of you have found this interesting all the best.
I have also attached a gbpchf chart that shows a nice harmony. I will short the top of the pattern hopefully at a psych level - fib ext - or pivot.
Last edited by pdhuey2000; August 12th, 2012 at 04:04 PM.
Reason: spelling that affected meaning.
I noticed this FB pattern on the eur/usd. I am favoring a break to the upside for me that would mean closing above the 50 level. Price action pretty slow today so im going to be trading half size, and holding to the 2400 level.
If the break is down, Im a little concerned about the resistance below especially the pp, recent swing and trendline in the way.
To the down side Im trading 1/4 position size.
I managed to catch a nice trade on the gbpchf earlier in the week so im playing defense.