MYL on watch for possible end of the day short squeee. Will load if it stalls and bid shows size.
(binned per thread starter's request) Market bottom rotation trad
{quote} EURUSD sold all, but its by no means done yet. Likely to be activelly trading this one tomorrow. Lots of ins and outs. Buying dips on bid kicks and established demands, buying pullback legs and ballz in on any supply takeout.All that if it keeps head above .151X {image}
I was just reviewing some of my demo trades with your approach over the last week and did find myself a little confused on telltale signs to differentiate market bottom rotations and pullback continuation plays.
In *some* cases, it feels like they can look very similar, and figuring out how to play it can be confusing.
For example, if we look at your EURNZD play yesterday:
As it stands, that's clearly a market bottom rotation. Buuut, what if it had looked more like this (excuse the quick photoshop):
I know it 's a bit of a rough contrived example, but my standard thinking would have identified it as a possible pullback continuation.
However, if I understand right, the reason the second example is not a pullback play is because it's forming LHs instead of HHs.
If it were a proper pullback play, we would want to see HHs, counter-trend. The idea there is that we're trying to identify a MM trying to getting better fills on the short side by squeezing price higher. Progressively price would move up in a zigzag motion, motivating long entries. The longs would then position their stops below the lower trendline under the HLs. So once the game is on, we'd look for (ideally) a microshelf LH, and finally a break south of the HL trendline. Once this happens, the stops of the longs will trigger thus price breaks down, continuing the trend.
Did I get that right?
