How to avoid getting your positions underwater and becoming the MM's liquidity π
πΈDonβt trade at the weekend:
Exchanges are closed so we donβt have trading sessions (no liquidity)
MM knows retail traders have more time to trade during the weekend so they set many traps. Also, most weekend moves get retraced the next week filling the CME gap
Exchanges are closed so we donβt have trading sessions (no liquidity)
MM knows retail traders have more time to trade during the weekend so they set many traps. Also, most weekend moves get retraced the next week filling the CME gap
πΈDonβt trust Asia pumps:
This is something I mentioned several times after Asia pumps. Time has proved me right.
Most Asia pumps get fully retraced in the next sessions. You can learn more about the trading sessions in the pinned tweet.
This is something I mentioned several times after Asia pumps. Time has proved me right.
Most Asia pumps get fully retraced in the next sessions. You can learn more about the trading sessions in the pinned tweet.
πΈDonβt trade days with news announcements unless you have a strategy:
News announcement days such as FOMC and CPI reports are very volatile and you can see long and short positions being hunted.
News announcement days such as FOMC and CPI reports are very volatile and you can see long and short positions being hunted.
You can trade after developing a strategy & risk management.
For example, I believed that this weekβs CPI was priced in so I set a low long order because I knew that it was going to get trigger due to the high volatility.
The order was triggered and I saw a pump straight after.
For example, I believed that this weekβs CPI was priced in so I set a low long order because I knew that it was going to get trigger due to the high volatility.
The order was triggered and I saw a pump straight after.
πΈKeep an eye on wicks:
Long wicks act as liquidity pools and they behave as magnetic zones. Price will visit that liquidity zone again.
Also note that several wicks but price not progressing any further means that MM is building his positions. Then we can expect a reversal.
Long wicks act as liquidity pools and they behave as magnetic zones. Price will visit that liquidity zone again.
Also note that several wicks but price not progressing any further means that MM is building his positions. Then we can expect a reversal.
πΈBart Simpson pattern:
A typical pattern that we see almost every week that plays with traders' emotions.
Long and shorts liquidation points get hit during this move so it's one of the MM's favorite patterns.
Learn, identify, trade. In that order.
A typical pattern that we see almost every week that plays with traders' emotions.
Long and shorts liquidation points get hit during this move so it's one of the MM's favorite patterns.
Learn, identify, trade. In that order.
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