October has been a pretty tough month. Initial success gave way to some confidence-sapping trades. Fortunately, I have been able to muster some good trades and restore a degree of confidence. More about this in another post....
For now, I'd like to focus on an interesting strategy I came across in an old issue of Traders Magazine. Called "Flash Formation Fractals" this is a very geometric kind of a pattern, something that I feel rather comfortable with. By using an initial swing high or swing low and a retracement point, it is able to project a target and a reversal zone. More often than not, it proves to be eerily accurate. Using this technique, FTSE looks set to lose about 290 points or so from the current level of 6291. Yes, I am looking at an initial downside target of 6007! Here's a screenshot of the setup and the target level.
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