Wednesday, May 27, 2020

How Market Maker Manipulate The Price Study Cases


I think the most profitable trading strategy is how to read Market Psychology of Market Maker. Here is my analysis after a big Up Grinder of Cable Price:

Retail Traders lucky enough buying before the big up move will always set TP and SL based on Price, The good area of Profit Taking is 1.2377 or 1.2400. So what happened is price not yet reach there but create a pullback.

First Pullback 1.2300, a good spot to raise SL around this Area. Few hours later, it got Hit and Stopped Out. Decent Profit, it is okay. But what happened, price bounce up again and Some Retailers will re enter to chase the market to the original Profit Target. And as we already suspect, Price slammed down below the low to stopped out the Re-entry Trader. At this time, most traders will give up and move on to another pairs or trades. And price Spike Up very hard that only few can catch the move. This is a manipulation to shake off piggy back trader from getting massive profits.

In my conclusion, it is difficult to make big profits in a long term. But to target 25 pips or 50 pips is very doable in day to day basis. For example above we know the area where market maker will target their prey. We know that after the first pullback, price will eventually re visit the area for Stop Hunting. What we do is waiting the pattern emerge then we enter the market, We won't get hundreds of pips, but it have high probabilities.In the long run it will become big pips accumulative.

Wednesday, May 20, 2020

Moving Averages Price Trapped


This is a strategy of Moving Average Swings and I think it correlated with how algos works. Let me explain how this works. This is 1 hour charts of GBPUSD. The red line is where the high and low of the EMA swings. EMA swings is when EMA do the reversal and create hill or valley. I draw a line at the top and bottom of swings (Not shown above).

The strategy is very simple. We wait until price is trapped with the Breakout EMA. Breakout EMA meaning the EMA line break the top or bottom of EMA swings, the easy word is breakout support or resistance, not price breakout, Moving Averages. 

As example above, price not yet it the higher EMA swings (top red line) when EMA line breakout the previous EMA swing. This means price is trapped between EMA breakout and EMA swings. Most of the time the opportunity is very short timed and not enough pips to profit. 
Above setups we have 2 hours and 30 pips max profit potential. 
Sometimes price already hit next EMA swings while EMA line haven't breakout yet. This means no setup. But if it happened, it is a very high probability to succeed.

These days it is very difficult to trade with conventional strategy. The algos of market maker have only one purpose. Take our money as retail traders. They will do anything to rigged the market and destroy us. If you follow the price only you will chopped to death, sudden spike, pullback, we enter at pullback, then price reversed. We then wait for pullback, another reversal. Consolidate, then fake breakout. I saw countless failed pullback and fast price movement all the time. 

With this strategy, we can filtered out chopped price and set target price. This is easier to analyze than crammed up candlesticks. It takes experience and I am nowhere near it. But gradually I can see the big picture of it. Price is to manipulate traders. But with EMA swings, we can analyze what the market maker want to do next.