Exploiting trapped traders on S&R flips | Forex Factory

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Attachments: Exploiting trapped traders on S&R flips
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Exploiting trapped traders on S&R flips

  • #1
  • First Post: Jan 26, 2023 6:00am Jan 26, 2023 6:00am
Hello all,

This journal is for my 3 little kids.

In the future, after I won't be around, I would want them to have this tool (trading) in order for them to be free from financial burden issues.

I hope you will find this journal helpful and that it will help others as well with their trading.
Financial markets aren't supermarket
  • #2
  • Jan 26, 2023 6:35am Jan 26, 2023 6:35am
I want to start by writing the following, this game is extremely hard, if you trade Forex, it can be even harder since it's a 24 hours market and usually there is no main trend.

In order to make it in this game you MUST be able to control yourself and know what are your good and bad behaviors , I'm for example hate to be wrong in my day to day life, you can bet it influences my trading.

Trading is 10% analyzing the market (TA) and 90% phycology, you can analyze it perfectly and know what price will do but you won't be able to put on a trade and manage it. It took me time to grasp this and while the time past, I tried switching many trading system, tried to find the best one, tried to find the holy grail, after almost 15 years of trading, I found out there is no holy grail, the holy grail is to be peaceful with yourself while trading.

I will just write that I have found the best system to be to trade around S&R levels with no indicators.

There is so many aspects of trading, I hope I will be able to touch them all. If I will have to sum it up I can say that no matter what's the system, if you have a good MM and strong phycology understanding, you can be profitable.
Financial markets aren't supermarket
  • #3
  • Jan 26, 2023 9:22am Jan 26, 2023 9:22am
GBP/CAD 1H chart

Went short after price couldn't hold the upper flip, see Red arrow for price retesting that area when my order got triggered.

Closed the trade when price had hit the lower resistance which now should act as support, this level in itself sits of a S&R flip.

Also attaching the 4H chart where you can see the flip.

That trade closed for +1.33R
Attached Image(s) (click to enlarge)
Click to Enlarge Name: GBPCADH1.png Size: 19 KB
Click to Enlarge Name: GBPCADH4.png Size: 21 KB
Financial markets aren't supermarket
  • #4
  • Jan 26, 2023 11:12pm Jan 26, 2023 11:12pm
This level continues to support price one more time...

Let's see if it will hold, if not, it should act back as resistance
Attached Image (click to enlarge)
Click to Enlarge Name: GBPCADH4.png Size: 21 KB
Financial markets aren't supermarket
  • #5
  • Jan 27, 2023 2:59am Jan 27, 2023 2:59am
Quoting Touch Trader
Let's see if it will hold, if not, it should act back as resistance {image}
Same 4H chart, same level.

Price couldn't keep that area as support, broke to the downside and as written, now this area acts as resistance.

See high of the bar market with Black arrow for the retest.
Attached Image (click to enlarge)
Click to Enlarge Name: GBPCADH4.png Size: 19 KB
Financial markets aren't supermarket
  • #6
  • Feb 1, 2023 6:38am Feb 1, 2023 6:38am
EURCAD 8H chart

We have got trapped buyers on the flip of support and resistance, Short triggered while price had hit that low.
Attached Image (click to enlarge)
Click to Enlarge Name: EURCADH8.png Size: 6 KB
Financial markets aren't supermarket
  • #7
  • Feb 1, 2023 7:00am Feb 1, 2023 7:00am
EURCHF 6H chart

No trapped buyers on that flip but if you are aggressive you can get in Short with a tight SL.

Great place to look for price action bar confirmation.

Let's see how price will react in that level.
Attached Image (click to enlarge)
Click to Enlarge Name: EURCHFH6.png Size: 6 KB
Financial markets aren't supermarket
  • #8
  • Feb 1, 2023 7:18am Feb 1, 2023 7:18am
Quoting Touch Trader
EURCAD 8H chart We have got trapped buyers on the flip of support and resistance, Short triggered while price had hit that low. {image}
Closed @ BE
Attached Image (click to enlarge)
Click to Enlarge Name: EURCADH8.png Size: 6 KB
Financial markets aren't supermarket
  • #9
  • Feb 1, 2023 8:23am Feb 1, 2023 8:23am
Quoting Touch Trader
{quote} Closed @ BE {image}
It was the right call not to loose any $ on that trade.
Attached Image (click to enlarge)
Click to Enlarge Name: EURCADH8.png Size: 6 KB
Financial markets aren't supermarket
  • #10
  • Feb 1, 2023 2:17pm Feb 1, 2023 2:17pm
Quoting Touch Trader
EURCHF 6H chart No trapped buyers on that flip but if you are aggressive you can get in Short with a tight SL. Great place to look for price action bar confirmation. Let's see how price will react in that level. {image}
And here is the result...
Attached Image (click to enlarge)
Click to Enlarge Name: EURCHFH6.png Size: 6 KB
Financial markets aren't supermarket
  • #11
  • Feb 1, 2023 2:52pm Feb 1, 2023 2:52pm
AUDCAD 3H chart.

I have got Long pending order where last trapped sellers are on the flip or S&R.

Going to TP @ last swing area.
Attached Image (click to enlarge)
Click to Enlarge Name: AUDCADH3.png Size: 6 KB
Financial markets aren't supermarket
  • #12
  • Feb 1, 2023 3:05pm Feb 1, 2023 3:05pm
SP500 4H chart

Worked like a charm even on news of FOMC Statement
Attached Image (click to enlarge)
Click to Enlarge Name: #USSPX500H4.png Size: 6 KB
Financial markets aren't supermarket
  • #13
  • Feb 1, 2023 3:14pm Feb 1, 2023 3:14pm
WTI 8H & 1H charts

Reason why price is stalling now where it's

Trapped traders, from the higher TF to the lower TF, spot the last trapped sellers and get in the other side.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: WTIH8.png Size: 7 KB
Click to Enlarge Name: WTIH1.png Size: 6 KB
Financial markets aren't supermarket
  • #14
  • Feb 1, 2023 3:28pm Feb 1, 2023 3:28pm
USDMXN 3H chart

Do you see how it's working?

Go from the past to the present and look for trapped traders.

You can simply spot them by looking for bar highs / lows on the flip of S&R.
Attached Image (click to enlarge)
Click to Enlarge Name: USDMXNH3.png Size: 7 KB
Financial markets aren't supermarket
  • #15
  • Feb 2, 2023 9:00am Feb 2, 2023 9:00am
Quoting Touch Trader
AUDCAD 3H chart. I have got Long pending order where last trapped sellers are on the flip or S&R. Going to TP @ last swing area. {image}
Price found support for an hour but failed to keep that level.

Moved my SL below the low of the bar (Red arrow) and took the lose.
Attached Image (click to enlarge)
Click to Enlarge Name: AUDCADH3.png Size: 7 KB
Financial markets aren't supermarket
  • #16
  • Edited 9:41am Feb 2, 2023 9:18am | Edited 9:41am
USDCAD 3H chart

I'm Long from the retrace of price to the box area.

We have Two wicks for trapped sellers...
Attached Image (click to enlarge)
Click to Enlarge Name: USDCADH3.png Size: 6 KB
Financial markets aren't supermarket
  • #17
  • Feb 2, 2023 4:38pm Feb 2, 2023 4:38pm
Quoting Touch Trader
USDCAD 3H chart I'm Long from the retrace of price to the box area. We have Two wicks for trapped sellers... {image}
Moved my SL just below the box where the Red arrow is, which reflects a very tiny lose.

Starting to look for TP area, mostly in the upper box.

If price will hit it, that will be ~3R
Attached Image (click to enlarge)
Click to Enlarge Name: USDCADH3.png Size: 7 KB
Financial markets aren't supermarket
  • #18
  • Feb 3, 2023 12:15am Feb 3, 2023 12:15am
Quoting Touch Trader
{quote} Moved my SL just below the box where the Red arrow is, which reflects a very tiny lose. Starting to look for TP area, mostly in the upper box. If price will hit it, that will be ~3R {image}
Price had hit last swing high, I'm now @ BE
Attached Image (click to enlarge)
Click to Enlarge Name: USDCADH3.png Size: 6 KB
Financial markets aren't supermarket
  • #19
  • Feb 3, 2023 12:58am Feb 3, 2023 12:58am
Quoting Touch Trader
{quote} Price had hit last swing high, I'm now @ BE {image}
Here is the dilemma of the trader... everyone is speaking about not losing and keep it small, but what about taking profit and let your winners run?

What do you do with such a move where price is going your way? do you move SL?, take partial profit?, not doing anything?

This game is hard for both sides, losing and winning
Attached Image (click to enlarge)
Click to Enlarge Name: USDCADH3.png Size: 6 KB
Financial markets aren't supermarket
  • #20
  • Feb 3, 2023 1:17am Feb 3, 2023 1:17am
Quoting Touch Trader
{quote} Here is the dilemma of the trader... everyone is speaking about not losing and keep it small, but what about taking profit and let your winners run? What do you do with such a move where price is going your way? do you move SL?, take partial profit?, not doing anything? This game is hard for both sides, losing and winning {image}
Price is starting to retrace, this is the point I have decided to move the SL under the minor swing high, the level where price had broken hard (Red arrow)

This level should hold price in order to continue with the uptrend, if not I'm out with just above 1R
Attached Image (click to enlarge)
Click to Enlarge Name: USDCADH3.png Size: 6 KB
Financial markets aren't supermarket
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