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
José Ricaurte Jaén is a professional trader and Guest Editor / community manager for tradersdna and its forum. With a Project Management Certification from FSU – Panama, José develops regularly in-house automated strategies for active traders and “know how” practices to maximize algo-trading opportunities. José’s background experience is in trading and investing, international management, marketing / communications, web, publishing and content working in initiatives with financial companies and non-profit organizations.
He has been working as senior Sales Trader of Guardian Trust FX, where he creates and manages multiple trading strategies for private and institutional investors. He worked also with FXStreet, FXDD Malta, ILQ, Saxo Bank, Markets.com and AVA FX as money manager and introducing broker.
Recently José Ricaurte has been creating, and co-managing a new trading academy in #LATAM.
During 2008 and 2012, he managed web / online marketing global plan of action for broker dealers in Panama. He created unique content and trading ideas for regional newspaper like Capital Financiero (Panamá), La República (Costa Rica), Sala de Inversión América (Latinoamérica) and co-developed financial TV segments with Capital TV.
He is a guest lecturer at Universidad Latina and Universidad Interamericana de Panamá an active speaker in conferences and other educational events and workshops in the region. José Ricaurte worked and collaborated with people such as Dustin Pass, Tom Flora, Orion Trust Services (Belize) and Principia Financial Group.