Imagine understanding how to execute with precision?
Imagine understanding the Why behind the markets....
Liquidity, Footprints, Level ll which is all considered within the framework of 'smart money concepts'
December is traditionally known for the lack of liquidity and reduced volume in turn which causes increased volatility. Traditionally many including...
We are caught in an ugly range on this pair, we are currently trading at a key supportive region which is most likely going to be stop hunted.
I would like to see a push below support into the liquidity pool marked before rejections to the upside.
We need to monitor the DXY constantly to see whether or not this move will be valid next week.
I am expecting a slight retracement to lure more sellers into the market before we see continuation into the prior highs.
The sentiment is heavy selling this pair so I will continue to buy.
I would like to see continued upside after we bounce from the key structure and trendline, more liquidity is sitting above those highs and that is what I will be targeting.
COT Data - Insistutions have increased their long positions significantly (+5,347)
The Brexit agreement created a lot of optimism for the pound which impacted the sentiment and introduced retail buyers into the market.
If you pay close attention, you will notice that two sets of liquidity have now been purged, potentially giving the banks enough volume to create the next upside move.
The first liquidity hunt was the push past resistance...
As shown in the related idea below, the liquidity purge that we expected has now completed, this opens up the possibilities of a potential sell position. I will be looking for a substantial crossover of the structure before I consider my sell, my SL will be placed at the SFL level marked.
Sentiment - 52% Long
GBP is due a shift in momentum but I think it will come at a price. I doubt we will see a steady drop off from here, I would expect a wick up to stop hunt before downside continuation.
Sentiment - 55% Buying
I took this trade with the team earlier today but the lack of market volume means we haven't got very far. I am hoping for a strong clear move to the downside, I will update you on the progress.
EUR once again fails to show clear direction, we have formed a bullish flag after the impulse and are just waiting for the the next leg up. Price may sweep down into the order block marked before firing to the upside.
Looking for a potential liquidity trap on Pound Yen today on this standout low.
This looks nice for a quick shakeout as it's the only low formed since breaking 138.2's so trying to hunt the stops here.
Will need confirmation to enter i.e. a break below and close above, showing that traders are trapped in positions.
Will target the FTA.
Still looking at a trap for Liquidity on Cable going into this week.
There are some nice lows that I'm looking for failure around providing a high probability move to the upside (targeting the FTA - First Trouble Area).
Why do I trade these liquidity traps?
Reason 1 - Because when price breaks structure, the breakout traders have their pending orders (Sell/Buy...
I see a potential Liquidity Trap above this high on EU.
There's going to be a lot of stops above this high as It's a fair swing point and as we know retail traders love having their stops above/below swing points.
If we can fail to close above this level I will short to the FTA highlighted by the horizontal line.
"Why are you certain there will be a reaction...
Second liquidity trap of the day.
Such a simple setup, and such a simple ethos behind the strategy. Find where others are going to get stopped and stop them out.
Usually US Bank Holidays are quiet and I'm not so active, but today we've smashed the liquidity traps.
This is a textbook pre-London setup.
During the Asian session we often see (especially in Yen pairs) moves that set up for the London session. What this does is provides us with liquidity of retail trader stops that we can take advantage of.
This was a simple 0.7 R trade that I was in and out of within 45 minutes.
It amazes me that traders still put their stops...
Looking for a potential Liquidity Trap here to trap new sellers predicting a change in trend and squeeze out current long positions.
I am looking from an institutional point of view, where liquidity is needed before a further move to the upside.
This area of business (blue rectangle) interests me as we have nice prior lows where there will be a lot of stops...
