It’s time for our daily watchlist! Things have moved a fair amount from yesterday, which is always good since it shows money is in the market, and we need this volatility to make our returns and take positions!
This trade is a position I am rather keen on, there is a very clear, fresh, zone
The price has now formed a double bottom on the daily chart, the weekly stack is just gorgeous, so I’ll be keeping my eyes on it for sure.
That being said, I’d like it if the price could make it a tiny bit lower before giving me an entry pattern, since the price has been moving sideways for a while, seeing it reach new orders would give me more confidence
I’ll add this pair to this watchlist, for three reasons:
- It’s the type of trades I can see as valid but also not really valid
- I believe it’s valid, however it’s borderline, hence I want to keep track of my thinking before the price action reaches the supply zone to be able to look back if I start sensing any greed or fear within me.
- It has a clear monthly stack
This set-up is interesting since the imbalance zone can be seen as a break of a phase line, after all it only withheld one month of price action, and was rejected only once (if we adjust it, otherwise it’s twice)
The price broke this phase line/trend line and then quite quickly reversed (similar to EJ which I’ll address shortly)
I would consider this to be a valid trendline since we can clearly witness a bearish impulse correction impulse pattern before our starting point.
From that starting point, there’s been three clear higher highs, and two clear higher lows, hence I will be willing to take this position
EUR/JPY is quite similar to CAD/JPY, however I would rate EJ as a more attractive trade than CJ since the trendline is a lot clearer
However, in terms of similarity I am talking about the break of the trendline and quite quick reversal to retest this zone (which is made of 5 white candles) that is the data point that makes me hesitant in pulling the trigger for this trade
That being said, the trend break is very obvious, we could be forming a head and shoulder pattern and there’s a monthly stack, which is important – that being said, there’s no weekly stack, only a monthly one (I prefer the opposite but it remains valid)
A lot more pairs are shaping up rather nicely, that being said, I’ll keep them for when they’re on active watch instead of talking about them every day!
I’ve decided to get yet another book about Marcus Aurelius, “How to Think Like a Roman Emperor” by Donald Robertson
There’s a saying I’m sure you know that says you’re the average of the 5 people you spend the most amount of time with.
I’d like to think that a Roman Emperor, and the last well known Roman Stoic , would be a good person to have in my circle of friends.
I’m probably going to write a blog post about Stoicism (with an S, not s) one day.
Tweet wise…. Here’s my favourite of the day
It’s not related to trading, but more about life as a whole, and what’s possible when you put your mind into something and start working form there
For instance what could I do with this blog without destroying the “brand”?
Could start selling coffee and my AWESOME coffee mugs (and apparel) right?! PLEASE SAY MY COFFEE MUGS ARE COOL!
Could start selling my watchlist and in depth reports
Could start raising awareness about my own fund (I do not have one yet)
Could use a blog to build awareness about me to get a job in a hedge fund
There’s unlimited possibilities, you just have to take one small step and you’re already closer to your end goal