Trapped Traders® Daily Analysis - Selling NZD/USD
José Ricaurte Jaén, José Ricaurte Jaén Celada | Senior Algo Trader - The Guardian Advisors | @JoseRicaurteJ
Sunday, February 19, 2017
So, the idea is that they’re believing the market will follow through to the upside. And critically, the market did bounce off the trend line pretty much to the pip, and that’s what will seduce and induce those traders into taking some risk. So, let’s just highlight that area. It’s that area in particular. So, if you were looking at that, the hard right edge, you would literally believe that what had happened historically, so how price had reacted in and around here as it bounced off the level, and kind of in here as well is actually occurring again, and that’s what will get some money in to spend money and take some risk. That’s what makes you do it. Come in off the sidelines and attempt to make some money.
And initially, in the beginning of the trade, it does actually provide you with some upside, and that’s part of that process, that trapping mechanism, that cons people into taking trades because they’re not really focusing on what’s coming. They don’t know this yet. That’s all they know. So, if we sort of blank that off, that’s the hard right edge. The market is reacting in a way that is congruent with their analysis, and perhaps in line with some money that they’ve made historically. Maybe they went long there. Made some money. Maybe they went long there. Made some money. This is just another opportunity to make money.