USDCAD:
Sonicers,
I think here we have a PVSRA clue that is slightly different from what we look for, but that might be even more potent.
On the attached M15 we see the Asian session MMs moved the price up twice, with notable activity at the highs - two possible Stop Hunts of shorts - and then so did the LO MMs. The clue I refer to is the fact that the US open MMs did not also quickly attempt a Stop Hunt of their own. Yes, they did eventually retrace the price about 10 pips off the half nuimber, but that is a very weak response for the US MMs. So, the clue here is that with such a weak whip back up, we might assume the US MMs realized the jig was up - few, if any, traders that were short were leaving themselves exposed to being stopped out - and that there were no, or insufficient pending long orders higher on the queue to make it worth while for the US MMs to run the price higher for that shorting liquidity.
We might cautiously presume that long orders are now much diminished and that stops on shorts have been removed to protect those positions from Stop Hunts. And hence, this is definitively bearish now, and any more retraces upwards are worth considering as short Scout entry opportunites in building your short trade. As always though, make your own decisions on this.
Sonicers,
I think here we have a PVSRA clue that is slightly different from what we look for, but that might be even more potent.
On the attached M15 we see the Asian session MMs moved the price up twice, with notable activity at the highs - two possible Stop Hunts of shorts - and then so did the LO MMs. The clue I refer to is the fact that the US open MMs did not also quickly attempt a Stop Hunt of their own. Yes, they did eventually retrace the price about 10 pips off the half nuimber, but that is a very weak response for the US MMs. So, the clue here is that with such a weak whip back up, we might assume the US MMs realized the jig was up - few, if any, traders that were short were leaving themselves exposed to being stopped out - and that there were no, or insufficient pending long orders higher on the queue to make it worth while for the US MMs to run the price higher for that shorting liquidity.
We might cautiously presume that long orders are now much diminished and that stops on shorts have been removed to protect those positions from Stop Hunts. And hence, this is definitively bearish now, and any more retraces upwards are worth considering as short Scout entry opportunites in building your short trade. As always though, make your own decisions on this.