What’s good guys
I wanted to update you on understanding the importance of intention and applying specific factors that add together as confluence to effectively exploit the market maker.
I have been trading dollar yen for over 6 years…There was a time where i didnt consider any other pair other than DOllar yen, My reasoning was simple…Become either a Jack of All Trades, or Master Of None…
You can ppreciate the latter is much more supirior…
Please review the images above. They tell the story on me coming to the decision to open the trades and close the trades to only open shorts and take advantage of the market makers intention.
Yes it is a monday, yes there are two market places closed.
But In the past 6 years, dollar yen has a tendency to take advantage of these instances and manipulate price in such a way that it throws people off on the direction.
Pay attention to the run up by dollar yen, she achieved 3 x ADR, although the reading was less than 3 (2.92, please review the past few posts on Dollar Yen i have posted here) I took that as an opportunity to consider that they may be looking to drop price at some point in the future.
As you can see i started to open the shorts at the first consolidation zone that appeared at the 50 ema 1hr…The green candle below was looking very promising that price would come back down to it.
Ultimately we pay to play….opened another 80 entries all in that condensed zone at the 50 ema and notable volume came in.
What can we learn about this…?
When price makes an extended move to the upside, aggressive at that, any vectors, will likely get recovered. This is the nature of the strategy. The TDI was showing divergence as the price was back inside the volatility band as it made new highs. This was the clue it was going to break down.
Study these charts guys…They break down everything you need to understand the behavior of the market makers, even during low liquidity instances.
Trade Well My Friends