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Institutional

GBPUSD - Liquidity TrapStill looking at a trap for Liquidity on Cable going into this week. There are some nice lows that I'm looking for failure around providing a high probability move to the upside (targeting the FTA - First Trouble Area). Why do I trade these liquidity traps? Reason 1 - Because when price breaks structure, the breakout traders have their pending orders (Sell/Buy Stops) activated to which the institutional players will trap by failing the break and pulling price back slightly to close above/below previous structure, invalidating the breakout traders ideas so they will either hit stop or pull out of their order due to fear or rules. Reason 2 - Because any retail traders who are currently still holding positions usually have their stops placed beyond structure/swing points creating a mass of orders. If you're not aware if you're short the market you have to buy back your position and if you're long the market you have to sell back your position. For both of these reasons this creates a high volume area of transactions in the market creating high liquidity. If you study what the big players do at these areas, watch your strike rate grow! If you want to learn more about how we trade at Xclusive Trading, either message us or check out our membership plan online: www.xclusivetrading-groupltd.com
by Kieran_Duff
EURUSD - Liquidity TrapI see a potential Liquidity Trap above this high on EU. There's going to be a lot of stops above this high as It's a fair swing point and as we know retail traders love having their stops above/below swing points. If we can fail to close above this level I will short to the FTA highlighted by the horizontal line. "Why are you certain there will be a reaction here?" - you might ask. Well if short traders have their stops above this high, as price squeezes and stops them out they will have to buy their way out of the order which provides a mass of buy orders or liquidity to the institutional players who need that liquidity to get their full positions in the market. They will then enter short to squeeze out any long traders who have traded the breakout or predicted the change in trend. And that's why we're in and out of these trades and will only trade to the FTA because you often find once price hits the FTA it can go either way.
by Kieran_Duff
2
The Technicalities of Key Levels (Institutionalization)This was made for someone asking for the key-levels on GJ and where they are. I hope this shows how powerful waiting for rejections and consolidation around institutional prices can give us high probability trades. The goal is to analyze from top to bottom, gathering the price action data in order to tally up confluences. For stop placements, the 4-hour chart will be the lowest in which we find SL points above lower swing highs and below higher swing lows. Turning analysis into trades.. When performing analysis across the daily and weekly timeframes on a Sunday night for instance or analyzing the daily charts at the end of every trading day, the first important pieces of data to pick out are key level price points and candlestick formations. You’re looking for patterns, that might serve as clues for the next directional movement of any specified currency pair. Price action, moving averages and key levels are displayed on the longer-term charts and these are generally the most significant and strongest. It’s best to take note of these levels at the end of each trading day or morning and then plot them on the charts using the charting tools available in your trading software of choice. Keeping a notepad at hand helps to keep track of the organizational breakdown of your selected currency pairs. Beginning traders should start out with six or seven pairs, then strip each one down, labeling the bullish and bearish indicators for each one on every time frame, starting with the monthly and working your way down to the 2-hour chart. Timeframe rules are the basic building blocks of all other trading strategies, so it’s important to have a good understanding of them before moving on to more complex methods. Keep it simple, learn the rules, make notes and work with the price action that the market delivers through the charts. In this sense it can be helpful to remind yourself that trading is essentially a financial game between the bulls and bears – the optimists and pessimists in the market – both of whom have the same goal of earning a profit but who achieve it through different means. Key level placement Support and resistance levels are one of the most important technical factors in trading. “Key levels” are certain prices for a currency pair which may support the price below the current market level or a price which may resist above the current market level. Support acts as a floor and resistance acts as a ceiling, both of which are “barriers of price.” . For example, the chart above displays various support and resistance zones. These key levels are major support and resistance areas; they are strong price points which the pair has reacted to a number of times. Currencies tend to react to these specific price points with a surprising degree of consistency. The market can either bounce or break upon the approach of a key level. Many beginning traders struggle due to not drawing key levels onto their charts accurately. Support and resistance are the absolute foundations which hold the ground for various other price action applications. Once a support level has been broken and the bears take control, the price often (but not always) pops back up to that same level from underneath in order to “retest” it once more before a continuation to the downside, and vice versa. Your job as a trader is to pick as side in this battle between support and resistance forces – between bulls and bears. If you pick the right side, then you will make money; of course, you pick the wrong side you will lose it.
by TayFx
DXY TUESDAY UPDATE So far the DXY traded above the previous yellow line that I had marked up in the analysis that is connected to this analysis. It retraced into the weekly price (red line) but didn't trade above it so im still bearish on the Dollar. As of now I would like to see the market retrace into this order block and continue bearish to take out the low that was formed yesterday. If it doesn't and takes out the low look for retracements in the dollar then go long on xxx/usd pairs!
TVC:DXYShort
by JohnnWick
4