Possible long set-up here with a successful break and hold of the triangle/flag formation.
Ideal entry would be at the 50% support level (1.5900) with a tight stop in anticipation of a breakout or on a back test of the sloping trend line following a successful break-out.
As we are still in a situation where there remains a lack of very high probability trades that are both ripe and imminent, I'm going to run through the main part of my watchlist showing what I'm looking at right now, why I'm looking at it, and detailing in pictures the simplicity of the type of trading set-ups I trade.
This week has proven to be yet another week where all of the pre-planned trades that were taken played out perfectly. I don't know how long this can last, but I've been saying that for weeks now so can only conclude that the inception of this blog has in some way disciplined me into only taking the absolutely highest probability trades. The only downside being that when everything plays out as planned it makes the blog a little uneventful with not a lot of new content to add mid week.
My last Cable Swing Trade was a long, I remained long as it topped out and it was suggested by Wernluck (See favourite links for his charts) at that precise topping moment that a possible major top was in.
I wasn't so sure so I let my trailing stop do what it was being paid to do... and sure enough a day or 2 later I was stopped out.
GBP:CAD has traded a choppy range for over a year now bouncing between 1.5300 and 1.6400 giving regular bursts of up to 1000 point thrusts throughout this time.
We now have a situation where it's back at the top of the range so we need to get clues on what the next move is. Historically you can see from the chart that the extensions to the limits of the range were not quite as powerful as this current move, furthermore, it can take days or even weeks to finally roll over at the limits of the range. So we could be slightly premature in hoping for a trade as early as this week, but it's certainly one to be aware of.
Since the SNB Euro Peg we've seen both EUR:CHF and GBP:CHF rally exceptionally hard to overbought levels. As I was fortunate enough to have participated in the long side of the GBP:CHF move, I'm now looking for signs to enter short ahead of a pull back.
Referencing the GBP:CHF swing long detailed HERE on 6th September, I've opted to close the position.Following an impressive 1400 pip rally over the last few days, I feel it would be foolish to attempt to squeeze every last pip out of my long position.