Smart-money
Trader/Investors must understand this process.......!Kindly comment with " Yes " for agree and "No" for disagree with this post:
Before the break-out, I've informed that " Breakout will give truck of Money. ..!". Exactly, we seen this statement was TRUE, didn't it? (End of idea link is added about this idea)
Let's talk step by step was happened here.
The Width of congestion area was equal to height of the price surged.
From my personal experience and the survey/observation I'm talking about this is almost the same area as price congestion in size of width and height after the price break. Let's try to explain in another words:
Horizontal width of congestion size = Vertical price move after break-out. (Generally, i noted that price moved away so far after breakout whenever congestion area is much longer.)
--> Let's talk little more deeper about CONGESTION area:
In the congestion area, accumulation or distribution process process. We will talk about accumulation only because, this was happened here.
Accumulation : smart money, money makers, huge fund-management, landlord of global investors whatever you called them they grab/connecting instrument(stocks, currency,etc) from retail investors in very slow motion because, they can smell insider upcoming news. After the completing this accumulation, news clear and price start to go away from the breakout area.
later i will try to explain you more deeper about it practically. Yes, obviously we can smell the process accumulation/distribution.
BTCUSD - Sell signalBTC showed a 4% candle to the downside. It found intermediate support at 8843 USD with a tiny pullback only to the .236 fib line.
After it got heavily rejected at 8200 USD It stayed well below the 9000 USD level, which gives us a solid selling signal in the short term.
By looking at the weekly (see below), this formation looks like a solid weekly high has been found.
If we find bearish follow through I expect the price to go further down to look for a new low to be set next week.
The most important level to watch is the recent weekly low at 8400 USD.
The question:
Will we see a higher low than that, favoring a bullish continuation on the weekly timeframe
or
will we see a lower low than 8400 USD which will put us to my personal favored accumulation zone 7800-8000 USD
Weekly Chart:
So if you have some BTC on an exchange that can be sold quickly, I think it's a good short opportunity in order to rebuy at lower levels.
Aggressive bulls could already buy in at 8400 USD, setting stop-loss below 7700 USD.
But still keep in mind that the 8k buy-in target is probably the best Risk/Reward Ratio you can get, if the price reaches this target.
EURUSD - 1h Trade Idea (Short)Here we see a lot of equal highs and quite obviously retail traders got in seeing a resistance, putting their SLs right above the equal highs. Smart Money knows about Retail Mentality and they know where their SLs would be. They need these SLs to grab liquidity, the latest upwards movement cleared all the SLs, now I'm considering EU to go down as the banks have liquidity and they can go to the intended direction.
Whale analysis #1 - Stop runningAn easy method that I'm using to anticipate whale behaviour. Identify stop hunts, messure how much the whales drove price up/down to run the stops, and then project the same distance x2 to x3 in the opposite direction to have an idea around what levels whales would like to take profit.