TradingView
makuchaku
Dec 19, 2020 2:44 AM

My trading strategies : Trade against the trapped trader! Education

Bitcoin / United States DollarCoinbase

Description

STRAT 11 : Basic premise

As price continues in a trend, more and more traders keep piling into the same direction, hoping that the trend will continue and they will make money. However, at some point, the trend sharply reverses, breaking the market structure in opposite direction and trapping a whole bunch of retail traders in the direction of trend which just got reversed.

We create a zone which identifies these trapped traders and then patiently wait for them to exit, and trade with limit orders in the direction of their exit.

You can add additional confirmation signals from DXY's directions for the instruments which are highly correlated to DXY (EURUSD, USDCHF, etc)
Comments
DannQcho
This is a Quasimodo Reversal Pattern
makuchaku
@DannQcho, Thanks for sharing!
Hotwasabi
basic everyday structure reversal when LH is broken and bias reversed with HH...once LH confirmed by break and/or break and retest of 'A' point or for the more agressive trader a candle patterns or 618 retracement then stall then momentum candle ..... your in the trade...its one of the setups i use every day...as does The Trading Channel, RockzFX and 40million other YT educational " buy my subscription" gurus lol but it does work, and its based on genuine market behaviour...ie structure, so its solid, no matter what name its given..and everyone on social media calls these age old price action setups a new name and then thinks/claims they invented it lol
More