"Three things cannot be long hidden: the sun, the moon, and the truth." Buddha
So can we short the AEX-index with full moon?
TradingEcology applies understanding of natural patterns towards stock movement as learned by the masters of math: W.D. Gann and Fibonacci. As this trading week have ended, some very interesting patterns can run the show for coming two weeks, till first week of February
In the chart, TradingEcology has detected two harmonic price patterns which will be initiated near point C (blue arrow down). As the 'FTI (aex-future) closed on 22pm (later than displayed 'aex 'cfd here) a valid short has been recored on 2h timeframe on Friday 13th of January. Those kind of setups give very minor reasons for a rise in price, with time is ticking and favor of a little short correction as well.
TradingEcology has detection built on the following major point from last two years of trading. As described in the yearly hot projection report. - High in April 2015 - Low in February 2016
Natural ratio's Moonphase: 29.53 Moonphase /4 = 7.382 (while 0,382 is a fibonacci ratio)
This ratio pointed at the 11th of January 2017 which may unfold as a high (point A in the middle) since point C has been set at 0,886 ratio lower. If we make this up to one, so 7,618 than we are on 16th of January 2017 as a time trigger to short for a minor correction. Please find this method of roottime calculation in the hot projection report of 2017.
However Nikkei and Crude oil are on a balance level, and can thus change into a new bull leg up for now reason (as shorts will forced to cover), it is likely to go lower coming week of trading. TradingEcology has a short viewpoint on markets if the 490 level in 'AEX will hold as a firm resistance coming week. With sounds risk management a breach below 486,40 (horizontal dotted line) will open short opportunities towards 481,60 and 478,10. All scenarios should be rewiewed under if and then conditions, never be rigid in thinking and stay flexible in execution. Manage your risk wisely, and remember be long volatility when vola is low!
With some uncertainty TradingEcology has an overnight short position in 'AEX and a profit target in short target zone between points D and D (481,60 - 478,10) with stop at 490. this position is in accordance with common sense risk management criteria
Take profit level 1 (tp1) has been reached. At 12 o'clock 'fti (aex-future) was 481.00 points which was 0.6 points below the short projection of last Friday. If you are in the hunt lets manage risk, and have fun!
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At opening gap down in the future (FTI) closed out 60% of short position. Heavy leveraged position made a whooping start of the week. More volatility to be expected!
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"If there is a sudden range expansion in a market that has been trading narrowly, human nature is to try and fade that price move. When you get range expansion, the market is sending you a very loud, clear signal that the market is getting ready to move in the direction of that expansion." – Paul Tudor Jones