Cable direction via pattern formations

[wasp]

Typical

Take a week off and it moves like that!

Not going to spend much time analysising as I won't be trading till next week but, blimey!

 

[wasp]

flags

Been a while but it was such a straightforward simple flag and drop figured it would be a great reference here.........

 

[wasp]

A wild stab in the dark.................

After the great drop on Thursday and Friday, I can see a couple of days of small range followed by a retrace up to the S/R and Fib levels around the 315 area. After that, anticipate a drop off again down to meet up at the 61.8 Fib level / downtrendline / major support and resistance around the 7940 area.

The level of 7940 is major S/R with resistance from September and October last year and also late Jan this year. If it breaks that level, then we could easily see the reverse of the first half of the year. 940 should be a major turning point in the future of cable for 06.

 

[Priceman]

After the great drop on Thursday and Friday, I can see a couple of days of small range followed by a retrace up to the S/R and Fib levels around the 315 area. After that, anticipate a drop off again down to meet up at the 61.8 Fib level / downtrendline / major support and resistance around the 7940 area.

The level of 7940 is major S/R with resistance from September and October last year and also late Jan this year. If it breaks that level, then we could easily see the reverse of the first half of the year. 940 should be a major turning point in the future of cable for 06.

Good call here Chris, I'm with you on that. Upside today and maybe tomorrow depending on US news then more downside to come....

good trading

 

[wasp]

triangle breakout

couldn't have asked for anything simpler really....

 

[smbtnt]

Chris,

Similar lines on my charts since AM.

 

[TheBramble]

couldn't have asked for anything simpler really....

Did you trade the break or the failed re-test?

Or both...?

 

[wasp]

nice one smbtnt.

Annoyingly, whenever I try similar setups on Indicies it never works but they work so much better and easier on currencies.

 

[wasp]

Did you trade the break or the failed re-test?

Or both...?

Both tony....

The break at 7 also = big ben(esque) and then again after the re-test. All I needed was to catch the run up too!

 

[wasp]

Ftse

Okay, see if the FTSE can do the same in a very similar set up....

 

[wasp]

I hate indicies

I knew there was a reason I stopped trading indicies.... The DOWS rise has scuppered that set up me thinks (see for certain in the AM)... I'll stick to what I know from now on!

 

[dc2000]

The DOWS rise has scuppered that set up me thinks

Why??

What you need is a -ve open an early 5701and a run south to the sun, would I be correct ?

 

[wasp]

Why??

What you need is a -ve open an early 5701and a run south to the sun, would I be correct ?

The FTSE has this horrible tendency to copy the DOW and since the DOW has moved higher since the FTSE's close, if it does copy it, then the set up will be void...

... Unless of course like you say, the FTSE does open circa 5701 and heads down, then its all good from then on...


Slightly pessimistic I know but my experiences with indicies aren't great!

 

[dc2000]

Fair shout, I trade more FX these days but still keep an eye on potential indices setups

Im looking for a FTSE open at 5675 and do an up down up type move very similar to todays Dow any move higher than 5707 would see me stand aside

 

[wasp]

Fair shout, I trade more FX these days but still keep an eye on potential indices setups

Im looking for a FTSE open at 5675 and do an up down up type move very similar to todays Dow any move higher than 5707 would see me stand aside

Ahhh, just as I thought... looking to open around 5710 does kind of ruin the setup. Strange how something that can work so frequently in one market means sweet FA in another. The DOW just has too much influence on the FTSE but even then, if the pattern would work, everything would have lined up.... unless it drops from the open, it ain't gonna happen.

I changed predominately to FX a long while back after the FTSE and DOW never seemed to go as I expected but do like to look for opportunities occasionally. Never seem to work out though .

I'll stick with the currencies I think....

 

[dc2000]

Same here although still have Dow short that is currently being squeezed

Cable doing the biz though

Looks like the FTSE doesn't want to fall quite so far as the Dow

 

[wasp]

Same here although still have Dow short that is currently being squeezed

Cable doing the biz though

Looks like the FTSE doesn't want to fall quite so far as the Dow

Cable certainly is... its dropping very nicely but the FTSE and DOW are on the back burner for now....

 

[wasp]

Looks like a possible flag pennant thing going on here...

That big drop today followed by consolidation looks like it should continue in a tight range till tomorrow morning. According to forexfactory the UK CPI fig. is looking very low which should give it a second drop off to continue the downtrend.

 

[wasp]

Certainly went higher than expected on the last pullback passing F50 all the way to F38 / S-R @ 540.

If the flag holds true tomorrow it could continue down to the major S/R at 7930 and hey presto... right back where we started!