Let's play a game. Which liquidity will be raided if volatility spikes?
Let's play a game. Which liquidity will be raided if volatility spikes?
Sunday gap up caught a bunch of sellers by surprise. Their desire to exit is our long trade!
The gap up on Sunday trapped a bunch of sellers, who would have a strong desire to exit when price comes back to them.
These are two important zones to watch for reversals from.
A large volume of sellers are trapped at July 2020 lows - who will have a strong desire to exit when price comes back to them - giving us a long entry.
DXY has trapped buyers and sellers on bottom and top of the monthly chart. This might become an operating range for next few months!
Trapped sellers (from 30m) inside a larger 4h zone - will have an urge to exit when price comes back to them - resulting in a long entry!
The zone at 8943 has a bunch of sellers trapped from the Covid-19 selloff. They would want an exit. That'll be the support.
Swing lows & highs when close by, form perfect liquidity pools - ready to be raided. This is where future trapped traders would be found!
The volume of trapped buyers above Jan 2020 time high is very low (both on weekly and daily charts). I suspect that we'll see more topside so that market traps more buyers above all time highs before it reverses down violently!
Trapped buyers would have a desire to exit when price comes back to them
Shorts are trapped in a uptrend in USDOLLAR/DXY. They would have a desire to exit when price comes back to them
Trapped buyers will want to exit when price comes back to them
Trapped buyers in a downtrend will have a desire to exit when price comes back to them
Trapped buyers will have a desire to exit when price comes back to them.
They would have a desire to exit when price comes to their level.
The sellers tried to sell below the monthly low and failed. Look for them to exit when price comes back to that zone : giving us a beautiful LONG trade. Go for 2x risk.