Forex Traders Daily
Trapped Traders Daily Analysis
Stop Hunt + Odds Enhancer
December 7, 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 Thursday, December 7, 2017.
And the level of interest that we’re going to take a look at today is a four-hour chart of the AUDUSD. You’ve got a level here. A bit of a demand level, how a supply-demand trader would describe it. A drop, base, and then a strong rally. And then price comes back in. Now, it might not look as if we had some entry cheese there, but in reality we did.
If we drop down on the hourly, you can see it there. So, traders took the trade in here. Went long. This was all they knew, believing that the market would potentially go back across this range. As they entered, they would place their stops under this level and currently those stops are being creamed. So, watch for some type of continuation and then a pullback, failure to follow through, and then back inside and potentially you could trade this back across that range.
If we just have a look at the price action again on the four-hour chart, you’ll notice that it’s come an awful long way without any type of retracement into a level like that. You’ve got to imagine there’s at least a retracement coming. Obviously then that could follow through or it could indeed be a reversal. The other option obviously is it could come back down through the range.
So, when you have a continuation of price like that, it won’t carry on forever. That’s not the way the market moves. So, it gives it just a little bit of an increased odds enhancer. Just bear that in mind for future reference. And yeah, if you get that action, then this doesn’t look like a terrible potential trade. It’s not there yet. It’s got to setup and obviously it could unfold and hit the bottom of that level and then just totally sell off from there. We didn’t have a setup, but it’s all about – smart trading is all about planning ahead in terms of what could happen so that you build that confidence when you realize that the market is reacting indeed the way that you had anticipated that it might.
So, I hope you found that helpful. There won’t be any daily video Friday or Monday, so I’ll be back with you on Tuesday. Have a nice weekend. And if you’d like to come and join me in my inner circle, click on the link and I’ll see you on the inside. Take care.
Forex Traders Daily