Get Mark Chapman’s Free Daily Trade Calls – Click here:
The trade we’re going to look at today is on the CADJPY on a four-hour chart, and the traps we’re going to look at is what’s known as a rat trap, which occurred in this area here, and structure failure traps, which occurred in here and in here. Essentially these traps occur when traders at the hard right edge will believe that pricers were going to follow through strongly as they had done historically as prices made new highs.
But then, as prices pull back, they don’t follow through. However, at the hard right edge, they gave the impression that they would, and as a consequence of that, traders entered the market believing it would follow through to the upside. But as you can see, that clearly hasn’t happened. There’s a definite risk off sentiment at the moment, which means commodity currencies will struggle and the JPY will be one of the benefactors. If price should pull back, this looks like a pretty good place to get short.
コメントを残す