W1 TELLS US THAT THE BULLS ARE STRONG.
SO I WILL BE TAKING LONGS ONCE PRICE GIVES ME A .
I WILL BE LOOKING FORWARD TO THE BREAK BELOW THE
FOLLOWED BY H4 CLOSING BACK INSIDE THE
THIS SIGNIFIES TRAP AND WILL HELP INTENSIFY BULLS
THIS IS NOT A "PUT A BUY ORDER BELOW THE INSIDE BAR" TRADE.
THIS IS AN "OBSERVE TO SEE IF TRAP IS FORMED" TRADE.
THIS IS A GOOD 3 BAR FAKEY SETUP THAT I PERSONALLY HOLD A HIGH REGARD FOR.
There are many ways to enter USDCAD long and i personally find this the most promising one since an is formed.
IF price breaks and close below the mother bar today. Then this trade entry is invalidated. We have to look for price action rejection pattern at 1.2000. Best case scenario and best RR.
At any point in time i may close my existing trades early (at a profit only) to enter another more profitable trade.
Or place SL at BE to enter another viable trade while still risking 2% only. I favour this more.
Price moved below the inside bar, people would sell but end of trading day price went back inside the inside bar. These people are trapped?.
they have only two choice,
1)sell now at a loss or
2)put their stop loss at the TOP of the inside bar since that is the point where their sell trade would be invalidated.
but think about it, both choices would lead them to BUY so as to close their position.
So essentially this fakey idea is to load on their misery/ride the wave, so to speak.