I am done trading for the day but I will give you a little insight into why I took the long scalp on EURUSD.
I will of course watch the market during the numbers today but I have taken my money from the markets for today so no need to get involved.
I. As always the market works in ranges... this trade is no different.
We had our clear and defined range which we used and traded in from last week.
The lower part of the pa can be considered as 'deviation'...why?? because the overall range is still valid... what else?
The HTF range (red line acting as 'support' for the current trade) is THE place where all the late shorts are getting trapped, overzealous and thinking 'we are going to 0'.
We knew and understood the current market structure and understood that within the context of a range all that pa was just noise. Add to it concepts such as OB's and FVG's and there is clearly NO REASON to short the bottom.
II. How about the entry?
The entry was based on a 15MIN FVG left after the market broke structure to the topside after trading through the OB (smaller red line sitting under the FVG on the attached chart).
The trade idea basically rested on hunting the top side liquidity from the top of the range. We disregard the deviations/traps (purple box) and remain focus on OUR TRADING RANGE
Hope it clarifies the logic behind the trade and how the HTF market and range is SUPERIOR to LOWER time frames.
Stay safe and never risk more than 1-5% of your capital per trade. The following analysis is merely a price action based analysis and does not constitute financial advice in any form.
I will of course watch the market during the numbers today but I have taken my money from the markets for today so no need to get involved.
I. As always the market works in ranges... this trade is no different.
We had our clear and defined range which we used and traded in from last week.
The lower part of the pa can be considered as 'deviation'...why?? because the overall range is still valid... what else?
The HTF range (red line acting as 'support' for the current trade) is THE place where all the late shorts are getting trapped, overzealous and thinking 'we are going to 0'.
We knew and understood the current market structure and understood that within the context of a range all that pa was just noise. Add to it concepts such as OB's and FVG's and there is clearly NO REASON to short the bottom.
II. How about the entry?
The entry was based on a 15MIN FVG left after the market broke structure to the topside after trading through the OB (smaller red line sitting under the FVG on the attached chart).
The trade idea basically rested on hunting the top side liquidity from the top of the range. We disregard the deviations/traps (purple box) and remain focus on OUR TRADING RANGE
Hope it clarifies the logic behind the trade and how the HTF market and range is SUPERIOR to LOWER time frames.
Stay safe and never risk more than 1-5% of your capital per trade. The following analysis is merely a price action based analysis and does not constitute financial advice in any form.
