Navigating The Market : Trading Plan GBPCHF 3rd September 2019
The price didn't fourth-tapped the buy stops yesterday. Equal(ish) intraday highs first formed on the 23rd August, tapped for the second time on the 27h August and tapped for the third time on the 29th. The root of yesterday move was from Friday's high. It went down and almost tested last week's low but it didn't close inside the liquidity pool to warrant me for a bullish trigger.
I am generally bearish on the sterling but as we have seen how the price reacted last week, I welcome any level bounces that I could get into until the trend/price expansion occurs, considering the fact that sell orders and buy orders (liquidity pool!) stacking at the upside and the downside. Last week's average weekly range was missed so I expect it will be tested sometime this week, and I anticipate whichever projection the price would make, that would be also this week's high or low (anchor).
In between the current range, there are reported retail buy stops at 1.2000-1.18000. When I see buy stops BELOW the current market price, I do not see an opportunity to trade according to the level's breakout but against it. I tend to see it as a place for the big banks/institutional to trap breakout retail traders and get liquidity so they can buy/sell at a better price. Whether it would "respect" the levels (a kinder word for "trap zones") or not, it doesn't matter to me because the levels I am interested at are the liquidity pools coincided with popular breakout levels. When price enters this zone, then I will wait for setups accordingly
Actionable :
Look for a bullish signal when price close inside the Sell Stops Liquidity Pool below current market price.
OR
Look for bearish signal when price close insde the Buy Stop Liquidity pool at 1.2100-1.2300
Actionable :
I am generally bearish on the sterling but as we have seen how the price reacted last week, I welcome any level bounces that I could get into until the trend/price expansion occurs, considering the fact that sell orders and buy orders (liquidity pool!) stacking at the upside and the downside. Last week's average weekly range was missed so I expect it will be tested sometime this week, and I anticipate whichever projection the price would make, that would be also this week's high or low (anchor).
In between the current range, there are reported retail buy stops at 1.2000-1.18000. When I see buy stops BELOW the current market price, I do not see an opportunity to trade according to the level's breakout but against it. I tend to see it as a place for the big banks/institutional to trap breakout retail traders and get liquidity so they can buy/sell at a better price. Whether it would "respect" the levels (a kinder word for "trap zones") or not, it doesn't matter to me because the levels I am interested at are the liquidity pools coincided with popular breakout levels. When price enters this zone, then I will wait for setups accordingly
Actionable :
Look for a bullish signal when price close inside the Sell Stops Liquidity Pool below current market price.
OR
Look for bearish signal when price close insde the Buy Stop Liquidity pool at 1.2100-1.2300
Actionable :
Comment:
Sell Stops consumed
