SFGate

AMBIT Architecture i would use a ripple fold curtain track. it makes the fold in a very regular, predictable, linear fold as opposed to a rod that essentially just bunches up the fabric when gathered. You can control the amount of folds and how deep as well with a ripple fold track depending on how far away you set it from the window wall. Along with the ripple fold, you can have the drapes pleated...although when this is done, you need a thicker material to hold the pleat.... if you want the least amount of material gathered, then obviously use thinner material and perhaps a deeper fold....together, it will look neat and "manicured"... good luck!

blindsdirectcanada For the Drapery i would recommend going with something called Grommet Drapery . I have used this type of curtain many times in this situation. It goes on a thin drapery rod which can fit just above your window frame.The stack on the drapery should barely cover any windows when opened all the way.

http://www.blindsdirectcanada.com/drapery-toronto/grommet-drapery.html

Cabell Design Studio Hello maretmaret,

And Happy New Year! I am in total agreement with AMBIT on the ripple fold curtain track, but would look into the ceiling track idea you have as well. There are plenty of light weight fabrics around that will provide privacy when closed and when placed in a grommeted drape will fold up rather tightly.

You may also think of a rolling top to bottom shade which could nest just inside a valence at the top of the upper window.

Examples from Houzz to inspire you below:

Insolroll Interior Solar Shade

Delia Shades' Custom Solar Shades in "Italian Arabesque" pattern

Sylvia Martin

Living Room

Best of luck with your decorating and please let us know if we can be of any assistance,

Cabell Design Studio

PLATEMARK DESIGN Aesthetically: ripplefold but logistically for stackback: grommet (but not with a ceiling track). Based on the space, I would go for ripple fold.

Interiors International, Inc. If you can live without leaving it bare is best.

applecider1111 how about this for your drapes?