Below are three charts.  The first two charts (starting from left to right) are of the EURUSD and a trade setup that I identified yesterday morning. Again, I'm done trading for the year, but I still like to get some practice and play with some ideas.  

(CHART 1) In this case the market had broken down and made some new structure lows then started to retrace. Whenever I see this I was taught to always ask myself "where is the market most likely to retrace to?"  If you look left I highlighted the place that I predicted the market to run into some resistance at. This same resistance level also happened to line up with a 38.3 retracement of the last major down move.

(CHART 2) If you look at the middle chart, I zoomed down to the 60min timeframe and threw in some Fib's to see if I would have any other reasons to get short at this point.  At first I was looking for an ABCD pattern at the bottom, but it didn't extend long enough. However the 1.618 extension of that AB leg did line up exactly with the 38.2 retracement from earlier.  Later I continued to throw in some more fib extensions and inversions as price action progressed and in each case there was something that line up at that 38.2 retracement.  Not a bad opportunity if you entered on an aggressive order. 

(CHART 3)  The third chart is a potential Gartley setup on the AUDUSD.  Nothing fancy about this setup but I put it on here because there can actually be a smaller gartley setting up in the opposite direction. I say could be because obviously we have no idea what's going to happen until price moves, but its something you should keep your eye on.  If the bigger one does complete then, there should be a pretty good risk reward ratio on the trade since it will be pretty close to structure.  Something to keep an eye on for the future. 
Roy
12/21/2011 17:29:04

Good eye Akil, I didn't even notice that smaller Gartley on the Aussie, I am playing the larger one having gone long with an aggressive C buy from .9886 ( B on the smaller time frame). Have that and two other trades still playing out from last week and the week before, but like you, no new trades for the rest of the year.

Reply



Leave a Reply.