Recent content by ftsedaystrategy

Double busting of the rising wedge provided an opportunity for a short but owing to the price action after what came out of Draghi’s mouth, I just couldn’t bring myself to short it.

Looks like another “head and shoulder” top formation is shaping up on the 1hour and 15 mins chart in its complex version. The last time this happened and the break below on 15 April carried the index down 120 points. The key support looks like the 6400 mark this time around. Will it be...

Mr. Fibonacci never fails to amuse me. See how the drop bounces at the 76% mark!

Busted “rising wedge” winning the day. After yesterday’s fall it climbed to poke just above the 76% Fib and then came the drop. T1 at 6446 taken out.

The obvious trade today was the break below the double top on the 15 minutes chart at 8.45. The flashing clue was the negative divergence of the momentum reading. After the break it was red all the way down. T1 was the meeting point of the trend line and 38% Fib (see chart). I expected a strong...

Falling wedge hit the target 6439. I would like to have seen another touch of the bottom line of the wedge formation but because the lows around this area are today's pivot and support, I could not resist a long trade on the break. Moreover a near touch indicates a partial decline which in turn...

Quick update on yesterday - after moving the mini double top trade to break even, it was closed out and interestingly it busted the pattern and moved up. I was not keen to trade this busting pattern due to the overhead resistance it faced i.e. R1, upper trend line on the channel formation, 62%...

Ok, progress update. After the morning decline, a “broadening descending wedge” formed with a clean upwards break prompting a buy. Obvious T1 was at R1 which is also the overhead trend line on the 15 min chart. It followed the script and subsequently formed a mini double top. The break below...

Two days in a trot I missed trading candle patterns when it was screaming sell! That’s the price of getting to your desk late. Yesterday’s excuse was stupidity and today’s – nursery run! The little ones have a weekend of studying chart and candle patterns! That’ll teach them to gobble up their...

Round two for the day. “Head and shoulder bottom” T1 at 6435 just hit.

Trade closed few minutes ago break of the falling wedge with T1 at 6423. Just to vent out my frustration of missing a decent trade in the morning – after yesterday’s trip to the moon by the index, it was interesting to see it stalling at my upper trend line on the 15 min chart which is the area...

The index has a rocket up it’s rear today. The ignition was the break above the ugly double bottom on the 15 min chart just above today’s pivot point. First target was at R1 also 62% Fib of 11 April high. Back up trade still in play.

Another good example of reversal pattern winning hands down!

Friday’s trade – first one was not great and the second was decent. Normally I do not use trend lines on the 5 minutes chart but I found this hard to ignore. The first trade was the break above the trend line with a small “double bottom” pattern preceding it. The target was 6300 area with 38%...

I have mentioned more than once that busting patterns are a gift and again today it is clearly demonstrated why this is the case. See the chart.