Donajor8

HOW TO TRADE LIKE THEM ANTICIPATION #2 THE DISCREPANCIES

Long
FX_IDC:USDCAD   U.S. Dollar / Canadian Dollar

The first thing I do is I find the range I see what’s it is doing I see how the mwvap behaves with it and how price behave once it leaves the range. As this is the best proactive way to understand the market is to follow the range thus noting discrepancies. I’d noticed that price left out a range. ( and I put boxes around them ) and soon after price was tackling the average in a bear markets I don’t expect to see such bullish response is soon? 🤔this is a discrepancy . As I say to the community price action isn’t bout drawling structure and patterns but it about applying them by judging how the bulls and bear react to each other aggressions when you start to think this way you’ll start to see things that you’d over looked as there are many here but I’m trying to keep it brief, so I’d enter this trade and as the market was selling down out the channel to l1. I also add to my size Friday after l2 and I will again add after l3 this allows me to get in the trade early with a small size that will break even when my remaining is added thus decreasing my Total risk by only putting a fraction of my size on the initial table with the reward of catching a reversal



Now
We have the second range
Notice how price hit a low and push right through the average out the channel this was a breakout notice the low and how price return back to the trading range there’s no bear candle in its trend as it passes the last selling bears candle ( yellow line) 🤔this is a discrepancy here! Since we are in a bear markets right and price just made a low why I don’t see any struggle of price to recover from that low struggle as in an unequal distribution of bullish vs bearish candles. I mean we should see more bear candles.
Now also notice and hold on to this thought as we move on that price is hoping along on the mwvap making lower highs on top of it.
Now price leaves out this range
It do a steeper drop from the average than the first but look at the low it made. It’s low is within the range of the first low. So l2 is within the range of l1 but l2 drop was steeper.🤔 this is another discrepancy!


Notice in this drop we have double acceleration. I’d explained many times about double acceleration .
Now at this low we have the same response as with the first low. The bulls took the low pass the selling climax twice without an interruption of bear candle( the yellow line) again!!! So now we have a lower low with the same result 🤔 this is a discrepancy!
Now look at how it got on top of the average this time..
It look less effortless than before but at a lower level 🤔 that don’t make much sense do it.?” So the lower price goes it becomes more easy to jump up on the average that’s is resistance..? 🤔This is a discrepancy
Now let’s put these together before we move on

So we have a market that was testing the mvwap aggressively each time at the low it was able to respond and recover aggressively where it should be at its weakest. L1 lead to a high vol moved that ripped through the low and the average but at that speed it fails to hold above but it pave the way for the next try... L2 is at a lower level from a steeper decline and we still had a responses at the low that pushed up into the bears selling trading range without interruption ( yellow line) .

Let’s continue
Now notice how the average arched at these two lows ( white line) l2 line looks more supportive .. look at how it’s in a cupping shape as it is ready to catch price
Notice how price is above the average and is trading there without even having to hop on top of the average as it did before, but we are at a lower low🤔 that’s a discrepancy!

Now the market is in position to go right while it fake the left as it will trick traders to sale
As the big players are getting in position to send price higher by faking lower prices and manipulating retail traders to sale the market. As price pulls back to the averages they will buy it and price will go up. Where I’ll be adding to my size as price drops from making of l3

As l3 is the last attempt before the market go up.

NOW
in stop hunt theory and it’s a whole method of trading that focus only on trading manipulation against retail traders:
we have l1 as the selling climax of the downtrend with high volume spikes a low tail with a fast reaction after the low that send price back into the trading range . L2 is a lower low with a low tail and price goes back into the trading range on weak momentum and less vol than l1 as this is the stop hunt moves that filled the orders of the players
Now let’s take from this and apply it ( sry I cannot disclosure this source or the teaching of shot hunt methodology but I do try to give up what I can.
So
L1 fast reaction after it was made back into the trading range we have
L2 slight lower low but goes back into the trading with weaker momentum than l1...
Look at l2 and l1
l2 looks weaker but it preformed better on top of the average 🤔 this is a discrepancy!

Also . Notice that from l2 swing up to the average it is making higher highs (green line ) while l1 made lower highs(red line) but the rsi is showing divergent on the green line highs on l2 at resistance 🤔 this is a discrepancy . Also I say in many post that if price range at resistance it will most likely take it out and go higher and if it range at support price most likely will go lower and according to stop hunt theory this is dome by faking in the opposite direction!
So let’s put all this psychology together here( as the market is mostly psychological) . Price suppose to be weaker at l2 it was a bigger drop but it went higher looking weaker and got on top of the average and is above it floating upward making higher highs going toward resistance where traders trendline are as they are waiting for a rejection and then the rsi show divergent but the whole market structure shows strength This is a discrepancy🤔 and validating my trade and increasing my probability of a successful outcome .. the reversal ! 😬

But I keep Track I know who say short or long let’s see what happen and maybe we’ll get so more long on the board lol after the fact 😝 and you don’t have to like all the work i put in in on here for FREE but just remember Im the 👆🏾with detail justification on longing this pair so you know we aint playing games here nor are we guessing we make calculated decisions.. for the most part 😭😭😭 🤨 I’ll have your remembrance


HOW TO TRADE LIKE THEM


Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.