As this was such a good setup I want to take a closer look.
For me, I love it when we get a break to new highs or lows, breaking an important prior high or low. And I particularly like it after a long choppy period when most amateur traders are frustrated. A sharp move to new highs or lows then occurs on high volume. BUT (and this is the important part) this break immediately fails, and usually fails right at our DP zone.
This failure to continue the move to new highs or lows is a classic “fake out” by the professional traders. It works best on horrible days like yesterday when it catches out all the amateur traders in the wrong direction.
The reversal from this failure usually results in a nice quick profit as the market quickly moves in the opposite direction trapping all the suckers who took the break. That is why it is often called a “fake out” or “sucker play”.
Thanks
Steve
For me, I love it when we get a break to new highs or lows, breaking an important prior high or low. And I particularly like it after a long choppy period when most amateur traders are frustrated. A sharp move to new highs or lows then occurs on high volume. BUT (and this is the important part) this break immediately fails, and usually fails right at our DP zone.
This failure to continue the move to new highs or lows is a classic “fake out” by the professional traders. It works best on horrible days like yesterday when it catches out all the amateur traders in the wrong direction.
The reversal from this failure usually results in a nice quick profit as the market quickly moves in the opposite direction trapping all the suckers who took the break. That is why it is often called a “fake out” or “sucker play”.
Thanks
Steve
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