mjws00 wrote:EURJPY has played out a little more. Here is a pretty picture.
This is a good example of the beginning of a "stop hunt".
The 1st box represents the Asian session and the is when the HOD/LOD is reset. The intent of price here is to drift in a small range, trapping traders. Price spread will begin to widen and possibly trigger breakout stops. Note the "bump" in price at the end of the previous NY session. This is designed to trick people into adding to trades, going with current sentiment (LONG). Price is dropped, trapping those traders.
As the Asian session ends, price begins to move with "false intent", usually in the direction with largest sentiment - trend biased traders. Once price has moved 25-50 pips beyond the Asian range, the "stop hunt" begins where both bulls and bears are slaughtered. At the end of the "stop hunt", price will move with intent, in the "true trend" direction, at the direction of the fox.
I use the term "fox" because it is an animal of intelligence and cunning. It is not the bulls, the bears or even your brokers who create these manipulated price moves. They are the work of the "market maker" or "dealer", who work for the banks. It is their job to take money from your pockets. This industry has no regulation, If this type of activity occurred in Las Vegas, Wall Street or Nasdaq, they would go to prison\ for doing it. Any person who does not recognize these facts is a fool soon to be parted from their money. Your task is not to profit by trading as you know it, it is to learn their methods and piggy back their trades. Only by trading in the direction of price, with the intent of the fox will you make consistent and substantial gains.
You learn by watching these professionals ply their trade, you watch their actions, their every move. You do not watch all the things that cover their tracks, that is what then want you to do.
If you are dedicated enough to learn these ways, you will be able to trade larger lot sizes, with confidence and make more in profit from a 20 pip move than a 300 pip move. Your goal is to make money, not pips. I can generate as much money from 50 pips as 20,000 pips. I have done it to prove the fact. By being selective and taking these types of trades, your accuracy will skyrocket. Using these methods, I have scalped 127 winners from 132 trades, in a live, verified account. I have taken 237 winning trades out of 266, on medium duration time spans on another live account. Do I take large risks in doing so? Some people think so but they compare what I do to their trading style. This is my style and my risk of ruin is almost non existent.
Can you trade like me and achieve the same results - no. Don't even try it. Can I teach you to trade like me - no again. You are not me. What you can do is apply what I do to your trading and improve on your methods. Make sure you trade with the fox. Place your trades with him and not against him. He always wins.
CJ |
And a wall full of monitors for those foxy bastards to stare at me through. Thanks for the laugh.