Beautiful Arc Trading Opportunity for CME

Dec 30, 2014: 3:22 PM CST

CME Group (CME) is forming an ‘Arc Trendline’ pattern that is among my favorite patterns to trade.

Let’s view the arc, note the levels, and highlight profit opportunities from future movement:

Imagine these curved or arc trendlines as you would regular trendlines where price tends to trade down from resistance and up off support.

However, the curve or parabolic nature tends to reach a climax or peak on a breakout through the steeply lower rising trendline.

Trade WITHIN the trendlines – using caution – as long as price does continue to bounce between these levels.

However, look to take profits or consider short-selling a breakdown – and possible reversal – through the lower trendline.

You can visualize a smaller arc trendline pattern on the chart by viewing the July to November 2013 period and the pullback that took price from the $84.00 level down to $67 in the following months.

Here’s another view of the parabolic arc trendline pattern:

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Corey Rosenbloom, CMT
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2 Responses to “Beautiful Arc Trading Opportunity for CME”

  1. Broad Says:

    There are always great opportunities for trading if we keep our eyes and heads open but we should never it’s not required or necessary to ride on every opportunity but we must be selective. I am very selective when it comes to trading. Although I do scalping but only because I got low spread of just 0.2 pips on all major pairs with OctaFX broker, it also helps me further with their smooth system where all my trades are opened instantly without requotes.

  2. Sajjad Says:

    It’s always nice opportunity to do trading in such situations, but we must make sure we prepare our self to deal with the worst instead of trying to work in everything same way. I trade with OctaFX broker and for me the best help is with their rebate program that gets me 50% back on all trading orders including the losing one, so that’s why I like it so much and gives me the comfort that I need and automatically improves my performance.