Many traders got confused by the whipsaw price action today on gold. It’s very easy for volatile price action to mess with a trader’s psychology, but from a supply and demand point of view, it was really quite simple to read. There were 3 major supply zones on the 15 min chart that were all followed by a very…
Here’s one I entered on the GBPUSD pair at 1.6442. The level was a supply zone and the trade was taken a few minutes before the GBP Consumer Credit and Money Supply announcements. Profit was taken at 1.6610 at near-term support. Always happy with a good profit before the midday lull, so not too bothered if it goes…
Friday’s CADUSD chart shows a regular occurrence. This spike happened during Canadian GDP news. Buyers who had their stoplosses below the prior swing low were taken out. At the same time, breakout traders would have attempted to sell the break of support at the red line. However price quickly returned leaving those traders trapped: So…
Here’s a trade I originally posted on Twitter. It’s a short on the AUDUSD pair which had made a 2nd return to supply. The trade raises a very important point… whether to enter at a level with no confirmation, or to wait for some kind of price action such as a pinbar? As you can see,…
A common setup that traders take is a break and retest of support. This setup on Gold would have had traders going long around the 1283 level and suffered some drawdown before it turned around. But what if I were to tell you there is a better way? Look carefully at the chart below and you will…