Forex Traders Daily
Trapped Traders Daily Analysis
June 16, 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 Friday, June 16, 2017. I hope you’re well.
And the trade we’re going to look at today is on a daily chart of the USDJPY. Really interesting. We’ve had this strong move down and then price retraced and then it broke to new lows, and then it pulled back into this prior level, which as it pulled back, obviously the idea is that becomes support. Support breaks through and then becomes resistance.
And it would’ve looked very much like that was how it was playing out at the hard right edge. So, these are levels. It’s kind of a level off to the left as well. So, there’s your level. Hard right edge is essentially where the price is in the here and now. It’s not paying attention to the fact that this big void we all have is going to fill. It just requires some time. It’s going to fill, and that’s what these people haven’t considered when they’ve gone short, believing that prior support breaks and then becomes resistance in the eyes of many, and then importantly, it starts to sell off.
Not only does it sort of sell off to sort of a minor degree. It sells off to a kind of huge degree and it actually takes out that prior low. So, not only is it seducing and inducing retracement traders at the level. It also seduces and induces breakout traders, and then it’s reversed hard against them since then. So, if we get a pullback, this looks like a pretty decent place to get long. We want to be long USD. The stock market will hopefully start to rise again shortly and the JPY will suffer as a result of that.
And this is sort of a double whammy type of trap. It’s a structure failure. The structure failure is in here and the failure essentially to follow through. Looks like that. But not only is it a structure failure. It went on to be what I refer to as a rat trap, a bear trap at the low. So, this looks like a decent trade.
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