It was one of those days where you would have been profitable just trading the divergence between price and the MACD histogram bars. The first trade would have been a loss or possibly a scratch trade if you played it tight, with the other three trades ending up as winners in my book. Note that A, B & C were class-A divergence patterns, and D a class-B setup, as indicated on the chart below.

My thoughts going into this week were as follows:

• The expected Santa rally is to continue this week and we should end the year on a bullish note.
• Daily chart shows the long bullish green candles from last week which propelled the FTSE 100 back into the middle of the symmetrical triangle formation and past the 20EMA.
• Looking at the hourly chart the market has just dipped below Friday’s lows and looks like it’ll head back down to retest the 6200 level.

It’s a bank holiday here in the UK today, and I will not be trading – just watching the markets and the FTSE which is effectively mirroring the futures market as it does out of hours.

Merry Christmas! Hope you have a joyous time over the festive season filled with love and laughter!