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...
With all the added pressure on the currency market due to corona virus, Bitcoin is set to sail.
I predict that most economies are going to tank a lot further yet also.
It is not wise to buy yet, wait for all the "dumb money" to buy, get wiped out by market makers, then buy.
See how easy it is to see stop losses, do you not think that big institutions can't see...
AUD/USD is at a monthly demand zone, there are numerous traps enticing retail traders to short. E.g. bouncing off the weekly trend line, and a so called area of resistance on the daily.
COT data also shows banks are becoming slightly bullish and reducing short positions.
Don't short basically.
No point letting this trade turn into a looser now. Two lower highs created, so some structure to help create a logical place to move the stop too. Stop will be now at 1.46825. Worry free trade now, let the market go where it wants on this pair now.
Updates to follow.
Did you just hand back over some money to the market after what you thought was a great entry? But why, that "support" looks fantastic? You might have thought;
Multiple touches in the past, strong zone.
Price created some nice bullish Price Action, it must be bouncing off the support.
We had a huge strong move up not too long ago.
This is accumulation within that...
So you have the "perfect" setup; all the stars align and you feel utterly confident in taking the trade, but should you? I have a process that must be completed before I even think about pressing the trigger.
Fundamental analysis points me in one of two directions, then from there I'm either short or long. I then look if there is a technical entry point that...
Notice the 5 touches of previous resistance marked by the blue arrows. This "strong level" entices people to sell and place their stops just above the level. See how price begins to fall from this level marked at the red arrow? This also draws more sellers into the market; people don't want to miss out; then BOOM! Price breaks the level and wipes out everyone who...
As we can see the black area indicates a potential zone where retail traders are tricked into going long by the illusion of fake support. Large institutions and experienced traders know most novices will have their stop losses just below this level. Institutions and banks manipulate these levels and take out stop losses to gain liquidity in the market. Once a stop...
Last Update 01:20gmt/20:20est
Bitcoin is continuing to grind higher, still contrained by the
parallel above it.It's double topping in the near term - has to
find buyers enough to push above the high at 11490 on
Coinbase feed but will likely still get rejected by the parallel
above it even it can push higher now - but grinding upwards