Back at the drop zone from before and price came rushing in nicely. I call this a push-fail. Price rushes up, takes out a high and runs into a bunch of sell orders still left there ('whale tracks' or value sellers still working their orders). All those playing breakouts see that massive green candle and go "this is it" and have their stops just below adding to the orders. Soon as it falls back below the high I'm in trying to get a free ride if/when breakout traders get kicked in the face and everyone that suddenly got bullish start feeling iffy about it, all this with a very small risk just above the high we made. It could find buyers and punch through in which case I'm protected by a very small stop, or rush down as bulls get caught or simply run out of energy and slowly trade down, perhaps even all the way to lows and beyond. Easy entry as it is a minor risk with a possibly massive upside.
Trade closed: target reached
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Comments
xologeis
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Out for a 108 pips and went long off the retest of the range lows (20m chart not shown here)
xologeis
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Don't have a screencap of the finished short to show the end but will add this for clarification - we can see that we worked off the warning line and followed it down to the retest of the UML before going long. Long orders were waiting at the prev range lows and we got out just above it at the UML.
ForceFollower
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I think the resistance is a liitle bit higher - at my black line.
xologeis
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I think we're thinking along the same lines here, I'm just working through current price flow (meaning I am willing to scalp my way in and take what I get for a 3rd test while still agreeing with your projection). Should it drop like a stone from this level though, I'm in and reworking the idea and not waiting for it to go higher.
ForceFollower
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Fair enough. I'm not a roaring bull here, but I've got some bullish bias. The pound has regained its lost confidence, so I think the gray down sloping fork won't let the price back in and we'll see it bounce and go up.
xologeis
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I'm trading these as a basket though and so far GU seems to be holding at the ML. Of course it is friday and if we hold at these levels there's a good chance it will blow through on monday as Aussie did last week etc.
xologeis
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Lovely chart by the way, I love beautifully clean lines of force/frequency ;D