FX & Currencies
Trapped Traders® Daily Analysis – Selling EUR/GBP
01 May 2016
Trapped Traders® Daily Analysis – Selling EUR/GBP
The trap we’re going to look at today is what I refer to as a structure failure trap, which occurred in this area here. Traders at the hard right edge would’ve been expecting prices to follow through had they been moving sharply up previously. As price pulls back into this prior level of resistance, which coincided with the 61.8 percent Fibonacci level, traders would have gone long in here, believing that prices would follow through and make a new high.
And as you can see momentarily Trapped Traders, this was the case, and this is what I refer to as entry cheese, which is the confirming price action that drags the Trader off the sidelines to take some risk. No sooner do they enter the market, the price came crashing down through that level, trapping those traders long. So, if we get a pullback up into this area here, this looks like a pretty good place to get short.
Source: Forex Traders Daily
