GBP Outlook for Jan/Feb (Educational) BEARISH
Once again, this is one of my indexes. Keep in mind that if the index is bullish that means the currency is bearish.
Across the board it is pretty obvious that the Pound closed out 2019 with tons of strength.
I'm expecting some sort of pullback or stop hunt to close out some of those buying positions.
The market will NEVER continue in one direction forever, people need to close profits, brokers need to close orders, etc.
The bottom of the chart looks like heavy buying activity to me. Yes, there was a huge down move. But I believe they pushed price all the way down so they could actually buy at a better price. You can even see the new high that came in and broke the down move's structure. If we go to a daily chart, we'd see they had a lot of buy orders they wanted to trigger as well.
I'm looking for the banks to hold above the line I drew. There are a lot of people trapped from that first move and they need to keep them trapped. So they can move the market without hurting themselves.
ALWAYS REMEMBER THIS:
Banks make up about 5% of the FOREX transactions...but they account for over 90% of the volume.
Retail Speculators like us make up 95% of FOREX transactions....but we account for less then 10% of the volume.
You will see I have that Pennant pattern drawn, and a section labeled for Retail Stops. Pennants are a retail pattern, and most people are taught to put stops above/below certain areas. From a market maker perspective, I want to target that chunk of liquidity so I can close out my trades efficiently.
Next time you analyze the chart ask yourself this...
There are millions of traders around the world right now looking at this, What are they seeing? How do they trade? What are their methods? They target their money....
(most people are lazy, and they follow the crap they see on baby pips, this makes them easy targets)
Think of how many traders have BIG goals for 2020?...You're not the only one.
If you want to change/elevate your trading results this year you need to change the way you see the market.
Welcome to the game of Financial Chess...
Across the board it is pretty obvious that the Pound closed out 2019 with tons of strength.
I'm expecting some sort of pullback or stop hunt to close out some of those buying positions.
The market will NEVER continue in one direction forever, people need to close profits, brokers need to close orders, etc.
The bottom of the chart looks like heavy buying activity to me. Yes, there was a huge down move. But I believe they pushed price all the way down so they could actually buy at a better price. You can even see the new high that came in and broke the down move's structure. If we go to a daily chart, we'd see they had a lot of buy orders they wanted to trigger as well.
I'm looking for the banks to hold above the line I drew. There are a lot of people trapped from that first move and they need to keep them trapped. So they can move the market without hurting themselves.
ALWAYS REMEMBER THIS:
Banks make up about 5% of the FOREX transactions...but they account for over 90% of the volume.
Retail Speculators like us make up 95% of FOREX transactions....but we account for less then 10% of the volume.
You will see I have that Pennant pattern drawn, and a section labeled for Retail Stops. Pennants are a retail pattern, and most people are taught to put stops above/below certain areas. From a market maker perspective, I want to target that chunk of liquidity so I can close out my trades efficiently.
Next time you analyze the chart ask yourself this...
There are millions of traders around the world right now looking at this, What are they seeing? How do they trade? What are their methods? They target their money....
(most people are lazy, and they follow the crap they see on baby pips, this makes them easy targets)
Think of how many traders have BIG goals for 2020?...You're not the only one.
If you want to change/elevate your trading results this year you need to change the way you see the market.
Welcome to the game of Financial Chess...