I took some simulated trades on usd/jpy today with my trading view paper account, not to boast but these were the results. This simulation would probably be closer to a full lot. The reasons took this trade was because my data was indicating market participants were over extended in their positions, the limit order book was heavily imbalanced on one side so I entered where could see many traders were likely underwater and rode the trades down until I noticed my data get quite volatile and spike through the roof signaling me to exit the trade and wait for less implied volatility. All these trades were taken in the first hour and I even went on to take a couple more scary, but successful trades probably against my better judgment because of the momentum squeeze I seen coming but still made some impulse trade anyways. I should stop doing that...
Joined May 2014
Status: PVSRA with Traderathome
GBP/USD Long trade Finally Closed Through this post, I provide instructions on how to read the market with PVSRA, and on understanding how the really market works. Enjoy it...
This post is related to my previous post, when I decided to go long on GBP/USD.
As I explained in the previous post, that based on the PVSRA indicator on the HTF (Monthly, Weekly, Daily), you will find a PA formation with a Bullish tendency, and that is with high activity at a very low price. If you investigate more into this pair, the lowest price around early September 2022, was the lowest price in 1985 for GBP/USD. So, the major background for this pair is Bullish. But be careful, because the price will not continue to go up linearly. We must remember that MMs are the dictators in this rigged market who determined on how the price will move next.
We'll start from poin (1) in the picture attached. At this point, MMs filled the SM short order queue above the whole lvl 1.19000. In this case, MMs sold part of their pounds liquidity gradually when the main background was Bullish. Yes, yet again, BLSH. MMs sold pounds at a relatively higher price after they bought them at a much lower price. That way, they can continue to accumulate more dollars to buy back Pounds when the price reaches the filling order area. That happens in area number 2.
This kind of scheme is also done in order to sucker short into DM, deceiving other traders to take short positions, see, in area 2 we were exposed to a bearish PVA with high volume which was preceded by a pin bar (shooting star) at a higher price, but the price suddenly stopped and rejected. This is a STOP hunt for traders - as Weak Holder has just entered the market with a long position. MMs get double, again free liquidity has been robbed from the market. Weak holders both short and long are forced out of the market; when the stop hunt is over, they go back to fill SM short orders in the previous FO area. MMs were able to sell Pounds at high prices again without even having to spend any money to buy liquidity.
When the price returned to FO Area 1, it seemed like a very strong Resistance with a sexy triple top. Despite all this, a trap awaits. MMs return to deceive retail traders to jump into shorts while forcing those who are long to exit the market at a loss when their exit plan does not match up with the momentum of MMs' scheme.
Returning to number 2 in the final phase, MMs fill SMs' long queues; buying back some Pounds at an even cheaper price after making some free money by deceiving traders like us. Then the price bumps higher towards the FO area at number 3 which I marked.
This is where MMs close the long by filling SM's short queue above the whole lvl 1.20000. Thus, MMs can sell at a higher price in order to continue making more money. The activities increases as the price fall below Half lvl 1.19500. Panic traders will tend to get trapped to rush into short positions and prepare to be slaughtered hogs as the price rises higher from point 4 towards point 5 above 1.22500. The same goes for traders who go long but to soon, STOP HUNT with a bearish PA below 1.19500 will force them out of the market before the Profit Run takes place.
MMs will always do this kind of scheme to determine the market.
You can observe it in Points 5 and 7. There the MMs close longs and open shorts, or in other ways, they sell Pounds at even higher prices and of course to get more money. MMs kept monopolizing the liquidity. Prices were pushed lower to buy more liquidity, and they will sell higher yet again when the run profit momentum arrives.
Points 5 and 7 are where MMs fill the short SM. Point 9 is when MMs fill the long SM queue.
Among these common filling order schemes, MMs will attempt to manipulate the market in order to deceive traders like us. This is an important point that we must remember and pay close attention to. Keep in mind, they are the greedy richest, the greedy selfish.
Look at the scheme of Points 6, 7, and 8 in the picture that I have marked. And try to think about what they are currently planning to do to us. And what awaits us if we don't understand how the market really works!!
Hope you find it useful.
Attached Image (click to enlarge)
"Bulls make money, Bears make money, but hogs get slaughtered"