Entry #1 GBPUSD - Trader: NaimEdelweissFX
Updated
In my GBPUSD trade, there is a compressed triangular pennant, compaction reducing indicating less volatility. with the presence of an order block prior to the formation of the compression zone. My chart reading indicates a pennant to be broken and OrderBlock to be filled and pushing hence grabbing the liquidity (sell orders) above the pennant and push the price downward to the actual intention of the market makers.
Note
what I meant by "grabbing the liquidity" is retail traders' "Buy Orders" which equivalent to Market Maker's Liquidity Grab "Buy Order". Hence breaking the Triangular-Pennants into the order blocks situated just above it. In which the retail traders will assume a buy position creating a false buy signal, i.e liquidity for market makers large Sell Positions. Consequently, will push the price downwards upon Smart Money/MM order is filled up in the Order blocks.
My biased remained bearish.
Trader: NaimEdelweissFX
Trade closed manually
I have closed the trade manually for the reason the orderblock will not be fullfiled again. - market forming CHoCH at 1.26731 (second peak of the pennants.
- the price breakout also generated a double top at the same level 1.26731.
- 1.26817 peak is a liquidity grab for those double tops and captured all liquidity of retail traders orders available at that point.
My further trade idea:
- bearish price movement
- bearish from 1.26817 towards the closest Liquidity Pools.
Note
Update: The trade filled up my original order block planning
- although it took some times.
- I have decided to enter the trade on short bias
- Lets see how it goes.
Trade closed: stop reached
- price pierced the marked orderblock- assessment is needed.
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