DislikedSold GN at 1.9614 and closed 1/2 at 1.9560 for +54 pips. SL to BE+1.Ignored
I think it could drop further because it looks compressed on both 4H and Daily. Maybe closed it too early again.
Attached Image (click to enlarge)
- #2,529
- Jul 19, 2012 11:21am Jul 19, 2012 11:21am
- Joined Mar 2010 | Status: Trader | 1,635 Posts
Exited as saw signs of a Euro bounce in EU +1.8R win.
- #2,532
- Edited 2:04am Jul 20, 2012 1:44am | Edited 2:04am
- Joined Mar 2010 | Status: Trader | 1,635 Posts
- #2,533
- Jul 20, 2012 2:12am Jul 20, 2012 2:12am
- | Commercial User | Joined Feb 2008 | 4,633 Posts
Thanks Balhana - saved me a task there 
It was a nice trade and nice analysis 5.25 (what you doing looking at M15 anyway - that's not like you!).
As Balhana said the reason the FB formed because of the supply in the DBD (marked to the left on chart below) on H1 TF. Price hit this supply and then closed back below the previous swing high - this is the buyers traps which of course you took advantage off.
They occur very often where a trap will form when a significant SR or swing high/low is broken with price moving into a relatively close SD zone which causes the reversal and the FB setup - novices are only focusing on the SR or swing high and hence why they get trapped with the big money sitting at the SD zone ready to consume all that liquidity provided by the novice traders.
Can you see that the technical FLS on M15 was the base of the pole i.e. where price then formed its own DBD before hitting that second demand zone you marked.
When it comes to 'fresh' demand and supply I think technically it's always hard to call something fresh when its in a range like EU is because the demand will always be a result of a previous zone - which for EU is the case because we have the rising TL. But what is more important to me is how price left the zone last time out - a fast move i.e. quick momentum suggests a strong demand / supply imbalance and thus increases the chances of demand (if talking about a demand zone) still remaining on the return. This forms the basis of the FTB setup - looking for those zones where the S/D imbalance has been very strong last time out.
It was a nice trade and nice analysis 5.25 (what you doing looking at M15 anyway - that's not like you!).
As Balhana said the reason the FB formed because of the supply in the DBD (marked to the left on chart below) on H1 TF. Price hit this supply and then closed back below the previous swing high - this is the buyers traps which of course you took advantage off.
They occur very often where a trap will form when a significant SR or swing high/low is broken with price moving into a relatively close SD zone which causes the reversal and the FB setup - novices are only focusing on the SR or swing high and hence why they get trapped with the big money sitting at the SD zone ready to consume all that liquidity provided by the novice traders.
Can you see that the technical FLS on M15 was the base of the pole i.e. where price then formed its own DBD before hitting that second demand zone you marked.
When it comes to 'fresh' demand and supply I think technically it's always hard to call something fresh when its in a range like EU is because the demand will always be a result of a previous zone - which for EU is the case because we have the rising TL. But what is more important to me is how price left the zone last time out - a fast move i.e. quick momentum suggests a strong demand / supply imbalance and thus increases the chances of demand (if talking about a demand zone) still remaining on the return. This forms the basis of the FTB setup - looking for those zones where the S/D imbalance has been very strong last time out.
- #2,535
- Jul 20, 2012 4:09am Jul 20, 2012 4:09am
- Joined Mar 2010 | Status: Trader | 1,635 Posts
Thanks Balhana - saved me a task there
It was a nice trade and nice analysis 5.25 (what you doing looking at M15 anyway - that's not like you!).
(1) "When it comes to 'fresh' demand and supply I think technically it's always hard to call something fresh when its in a range like EU is because the demand will always be a result of a previous zone - which for EU is the case because we have the rising TL."
When levels are stacked like EU, it is very difficult to trade. If price reacts to higher demand zones, that might be a trap only turn at the lower zones. This has happened to me many many times.
(2) "But what is more important to me is how price left the zone last time out - a fast move i.e. quick momentum suggests a strong demand / supply imbalance and thus increases the chances of demand (if talking about a demand zone) still remaining on the return. This forms the basis of the FTB setup - looking for those zones where the S/D imbalance has been very strong last time out."
Not only how price left the zone but how price is returning to the zone are very important. A quick and strong momentum candle out of the zone and being compressed back into the zone would be the best setup, I think.
- #2,537
- Jul 20, 2012 10:59am Jul 20, 2012 10:59am
- Joined Mar 2010 | Status: Trader | 1,635 Posts
When it's not an FTB then compression occurs more often and it's a great tool because it tells us before price hits the Supply / Demand what it is likely to do.
Bought GA at 1.5048
- #2,538
- Jul 20, 2012 12:45pm Jul 20, 2012 12:45pm
- Joined Mar 2010 | Status: Trader | 1,635 Posts
I talked about general setups, not FTB.
Bought GA at 1.5048
