What’s good guys…
So the image above, (please forgive y artistic skills) is designed to help you understand what to consider when deciding when to place a trade.
I will break down my thought process and hopefully, you can understand how I approached this trade I took earlier today.
The first Red circle – this is where the Asian session initially set up the intention. I always pay attention to the last 3rd of the Asian session…This is a place where most of the activity happens, towards the end of Asia.
The notable volume candle came down and tested the daily open and rejected this zone. This was the first clue that led me to believe the market makers wanted to keep price higher…
The preceeding candles after that was my entry…Now in hindsight, i could have added more entries as price was coming away from the 50 ema, however the clues for me that i needed to stay in the trade was the second attempt at the daily open and price still came back up (second red circle)
Notice how the red vector candle came down towards the daily open, bounced away from it and the next candle broke through…This was the retail trader being allowed to trade the idea that Dollaryen was going to trade negatively today…
Pay attention to the 3rd red circle with the presence of the Red and green vector candles showing stopping volume.This zone was being heavily manipulated by the market makers..You have to imagine, so many retail traders were under the impression that the price was going to drop below the daily open (Whiteline). This was another reason i held the trade.
Once the green vector candle (stopping volume) came in just before the new york session, note: this candle had spiked the daily open one more time, It was here where i decided that the trade was going to recover the previous vector candle at the 109.900 zone…I just needed to see the market makers step in…At this point gold was starting to turn down. Everything was stacked for price to rise..I just needed to see the candles show the market makers’ intention.
Then price then makes the move back up….
Notice the zones that were recovered…
The red vector candle.
The Psy low for USDJPY
The ADR High
The Daily Open Shows Strong Support
And currently, the 110.000 whole number is in sight…
So all of the behavior below the 110.000 zone was the market makers Building their longs below this key area to grab as much liquidity so they can come up towards the 110.000 zone and move further from there.
The takeaway from this trade guys is no different to what we anticipate to see in bitcoins behavior…Remember, all it takes is a tweet to throw bitcoin off…Everyone wants bitcoin to be cheaper, so the market maker will fulfill that….
Just remember guys, the Hybrid system works in crypto and in forex…The above lesson is to help you understand how the vectors play out at key zones…
Mad Love Guys