Forex Traders Daily
Trapped Traders Daily Analysis
October 4, 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 Wednesday, October 4, 2017.
And I just want to highlight an area for you to keep an eye on. It’s not necessarily a trade alert per se just yet, but it’s starting to look half interesting, and it’s this area here. What we had off to the left of that was a bit of a level. Now it’s bounced off that level as it happens, but I’m not so interested in the level. I’m more interested in this lower area.
The reason for that is off to the left it’s resistance. So, it acts as resistance again, pops up, comes back, kind of acts as support there, and then breaks through. Now, as it breaks down through the level, what people will do is they’ll sell the underside of a level like that. It’s a minor thing. It’s a little ugly, and shoulders. If you look at it in real time, it would’ve looked that way. As your left shoulder, head, right shoulder, and this wick would’ve looked very negative.
But as you can see, then you have this extremely strong move. Smashes to new highs, and there will have been people trapped in that wick. It’s about 40, 50 pips deep there. So, if you get another drop into this area, you’re going to also collide – this is a four-hour chart – with the rising 200-period moving average. So, you’ve got a little bit of confluence going on there, but really the interesting part is obviously the demand from that area was massive.
So, if we get a pullback into here, this probably looks like a decent place to look for an entry. Put your stop on the other side and away you go.
If you’d like to come and join me in my brand new inner circle, today is our weekly coaching call, so it’s a good time to come and join us. Click on the link below, follow the instructions, and I’ll see you on the inside.
Forex Traders Daily