Tradeciety

Beautiful squeeze - killing retail traders!

FX:GBPAUD   British Pound/Australian Dollar
916 6 20
Over the past days, I have been curiously listening to traders who bought the GBPCAD             way too early and got squeezed all the way beyond the last swing low.

It is a beautiful and classic setup and a good lesson to learn - just the fact that price is trading into a previous low is NOT a good enough reason to speculate on a turnaround. Our 20 SMA is keeping us out of any trouble nicely. It's such a simple rule but one that will always keep you out of troubles.

Price is setting up for a reversal but the amateur is as always too early and then once the real reversal happens, they are on the sidelines because they lost too much money and/or are emotionally burned.

This is such a classic amateur squeeze pattern and it's a beautiful learning experience.
xiiimik
2 months ago
1.7000 would be a good place to enter since it broke SMA20. Plus, it looks like at resistance. Why did not you take that trade?
Thanks.
Reply
withoutmercy xiiimik
2 months ago
because thats not the level he was looking for
Reply
fali4209
2 months ago
Nice explanation good thing I was short and made 300 pips on way down now on way up looking to do the same.

Are you trading this ?
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radraziel
2 months ago
Excellent explanation, we learn every day something new, thanks for sharing !!
Reply
Danidiaz1977
2 months ago
Hello, is it needed just the break of 20sma?, or the candle have to be closed up the sms?. Thanks!!
Reply
Nightfish
2 months ago
Hi, do you see a upcoming similar case for xauusd as a possibility at 1250, end of June low?
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