Forex Traders Daily
Trapped Traders Daily Analysis
Forex Real Money Move
November 6, 2017
Hello traders, Mark Chapman here, the creator of the trademarked Trapped Traders Concept.
Welcome to today’s Trapped Traders Trade of the Day Analysis. Today’s date is Monday, November 6, 2017.
And I want to draw your attention to this 15-minute chart of the CADCHF. And I’m just going to highlight this area here, where we had a ton of supply. The idea, if you listen to supply and demand traders, is that when you have some price action that can’t stay in a certain location, it absolutely screams away from the area, have a bit of backing and filling, a bit of basing and then a drop like that, that the idea is that there should be supply when price comes back to that level.
But as you can see, price cuts up straight through the level. Obviously this was on news and that can change the supply-demand equation. And because it has changed the supply-demand equation, there’s clearly no selling in there. Then this is a decent area to potentially take a long. Now, let me just scroll in and have a look.
So, what we want to pay attention to is yes, it’s selling off at the moment. Now, this move in here would’ve creamed any stops that were residing under this swing, these late longs trying to get in because they’re super excited about this massively strong news move. So, stops got tagged in here. Let me just grab a pen. So, stops got tagged there. If anybody got in on that move up, then stops got creamed there. The only stops sort of remaining to the upside are down in here, and these late longs are getting creamed as we speak, so they’ve been stopped out.
So, it would be kind of interesting if you see some type of stop hunt below any of these two levels, so what you’re looking for is price to come down and fail and then come back into the range. That should be your hint that there’s been a stop hunt. The question is: is this a real money move? And that’s a really important distinction to make when you get a big move like that. A big move like that can fizzle out completely. It can drag people in, but it never follows through and it inevitably comes all the way back. It’ll stop people out as well, and that’s usually a decent place actually to take a long just as a separate conversation.
But a proper, real money move: what you’ll see is you’ll see price remaining in a bit of a range. Like say if you take the original move. Say in that final quarter of the original move, if you divide it up into four. The reason for that is whoever took those longs are holding them. And if they’re holding them, then that’s proper money and that’s a massive potential opportunity for us to take a long, but what will happen is price will actually range in this upper or lower area of a chart.
So, while this is selling off, what you want to pay attention to, as I said, is that level and that level, and then price to come back in that. People to be stopped out and then price to come back in, and that is probably a great place to take a buy. Go long.
All right, guys, hope you found that helpful. If you’d like to come and join me in my brand new inner circle, click on the link below. Take care.
Forex Traders Daily