I feel that many traders will identify the blue area as a good place for a buy trade, since price has broken out of the trendline and above the blue area. They will then anticipate a break and re-test where that blue area will be filled with many pending orders, with their SL below it. Faking a small move will cause them to panic buy but the banks will take all of their money by moving it lower.
Once this has happened, traders will think that the move is a fake-out and start to sell, while the banks are readying their positions for the buy and take it upwards.
NOTE: THIS IS NOT A SIGNAL! THIS ANALYSIS IS JUST FOR JOURNAL PURPOSES AND MAY OR MAY NOT REFLECT MY PERSONAL VIEW ON THE MOVEMENT AS THIS IS NOT A PART OF MY REAL TRADING PLAN!
Once this has happened, traders will think that the move is a fake-out and start to sell, while the banks are readying their positions for the buy and take it upwards.
NOTE: THIS IS NOT A SIGNAL! THIS ANALYSIS IS JUST FOR JOURNAL PURPOSES AND MAY OR MAY NOT REFLECT MY PERSONAL VIEW ON THE MOVEMENT AS THIS IS NOT A PART OF MY REAL TRADING PLAN!
Comment:
Daily view
Trade closed: stop reached:
Stocks plummeted due to coronavirus scare which impacted GBP