Joseph_Yabwa
Long

Day Trading! Contraction & Expansion Strategy! BUY GBPUSD

FX:GBPUSD   British Pound / U.S. Dollar
Do you ever wonder how banks and hedge funds trade? Ever heard of the contraction and expansion strategy? Please allow to enlighten you. We all know that the market is in consolidation 70% of the time and in lower time frames, those consolidation/Contraction usually happen during the Asian sessions when you are dealing currency pairs such as the EURUSD , GBPUSD , EURGBP e.t.c. As we begin the European and London session, the market tend to come out of the contraction phase and set a new low and this is sometimes interpreted as a signal to enter the market by retail traders and that's one of the reasons why retail traders aren't very successful at trading because they keep falling into the traps of the expansion phase.

During the expansion phase, the market usually sets a low/high and then quickly reverses to the highs?lows of the contraction, depending on what the trend is on a higher time frame, the market will follow it and the turning point is the middle line of the contraction.

This is one of the strategies that I day trade with my WhatsApp group and we will follow this market and react to it at every turning point.


Any opposing comment, views or arguments are welcomed!

Comments

This is excellent
+2 Reply
Joseph_Yabwa Thethinker2334
@Thethinker2334, Thank you bro
Reply
I think this strategy stands tall... Following you keenly to grasp something from you.
+1 Reply
Wow bro that looks like it’s going up
+1 Reply
@practor, Not yet but the signs are good
+1 Reply
practor Joseph_Yabwa
@Joseph_Yabwa, I’m glad I took the trade then, thanks bro
+1 Reply
@practor, Well, done! Lets see if the market will give us some profits then
+1 Reply
practor Joseph_Yabwa
@Joseph_Yabwa, yes fingers crossed! I’ve never seen anyone who trades this kinda strategy you know
+1 Reply
@practor, That's because a lot of traders on here are retail traders so they were never taught to trade like this
+1 Reply
practor Joseph_Yabwa
@Joseph_Yabwa, oh I see, I’ve been watching a lot of trading videos on YouTube and I’ve never come across a strategy like this
+1 Reply
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