Category: Trades

The British Pound is about to complete a right angled broadening triangle (or a complex H&S bottom).

A decisive breakout above 1.35 and I will go long.

The New Zealand Dollar completed a head and shoulder bottom on the weekly chart.

After getting burnt hard on the Swiss Franc and Yen, I am taking a small long position. I wanted to go long Monday but I was having nightmares about my last currency trades. Also the right shoulder is ugly looking. I generally like to see the right shoulder symmetrical with the left shoulder. Stop is at 0.6785 and target is 0.77.

The Nikkei 225 completed a right angled broadening triangle.

Stop is placed at 24000. Target is 28000.

I was not expecting to see my charts looking like this when I awoke.

The markets all shifted to a “risk-on” mode once news broke about a COVID-19 vaccine. This caused the Swiss Frank and the Yen to get slammed.
The Six Flags pattern has completed. I still own a large amount of shares.

The Swiss Franc (SC) has competed a head and shoulder continuation pattern.

It also made a high weekly closing not seen in 5 years. I will go long tonight when FX pairing starts. Stop will be placed at 1.1053. Target is 1.1435.

Based on price and volume action last Friday, my experience suggest this symmetrical triangle should not be traded. This formation will most likely morph into something else.

Sideways movement on light volume right at the breakout point is not a good sign. I still might take a very small long position if there is a good breakout next week. However, my position will be small and my stop will be very tight. An update will follow.

The Yen is about to complete a massive five year ascending triangle.

From the daily chart we see a running wedge.

Stop was placed at 0.009572. Target is 0.010681.
The Yen is one of my favorite currencies to trade. Like all currencies, it seems to take forever to get to its target. So patience is key. The risk reward is exactly the way I like it. I risk a loss of $1,300 per contract for a gain of $12,000 per contract.

The more I look at the wheat market the more it looks like it is ready for blast off.

I opened up a modest long position in wheat here. I doubled my long positions today.

Gold is completing a bottom pattern. It is not the best looking double bottom, but I am willing to go with it. It looks like it wants to go to 2K.

I put my stop at 1900 with a target of 2000.

The SP500 and NASDAQ100 are forming text book symmetrical triangles. These price patterns are straight from a classical technical analysis text book. Almost everything about them is perfect.

My plan allows me to trade symmetrical triangles. Over the years I have avoided these trades. Mainly because they do not work well with my risk management plan. I usually get stopped out. In my experience,  three out of four of these are continuation patterns.
If the NASDAQ closes above 12100 in the next few trading days I will go long.
If the SP500 closes above 3540 in the next few trading days I will go long.
For an upside breakout, I will need to see a good increase in volume.
For any downside break, it will have to occur in the next few trading days. These breakdowns are usually on light volume.
The more the price goes into the apex of the triangle, the less likely I will trade it.