What dumb money did and Why GBPUSD falling so hard?
Forexian believes that market moves to where the liquidity is!Mark English
Most likely you heard this word if you are in any of Forexia chatrooms and in this blog, I’m going to show you a hot and fresh example of liquidity grab in GBPUSD pair as an example.
ACCUMULATION OF LIQUIDITY
Market makers need to create traps and then move the market against the direction of trap, to grab the liquidity of those who got trap!
and the majority of participants who get trap are RETAIL TRADERS!
this is the fact behind every moves in the market whether you believe or ignore it.
In order to identify how retail traders get trapped, we need to study the way of their trading and reverse engineer their behaviour to be on the right side of the market moves, where the Market maker making a huge profit from us! (figure 1)
as you can see above, retail traders will have their setup and confirmation however their cool strategy is made to fail and this is where you can see the true power of Forexia, because, in our definition of market structure, the moment market gives enough confirmation to the retail trader, will reverse and the stop losses of their trade is the liquidity that market maker is after, pretty simple yet requires lot’s of practice to master it.
Real Example: GBPUSD
GBPUSD analyses were sent to the academy members on 10th of March 2020 for a sell and I’m going to show you the reasons behind it which prove it ONE MORE TIME that liquidity moves the market.
how many times did you hear about weekly trend line or Trendline break and retest?
some of you may watch some videos online about it or maybe you paid to learn, I have good news and bad news for you!
the bad news is: IT WON’T WORK, in fact, it is designed to fail!
the good news is: you understand how exactly retail traders think and this is very helpful in reverse engineering them which is our strategy to trade.
here is the macro view of the trade before it happens: ( figure 2)
you can see, the overall trend is down in the weekly timeframe and it was broken then retested the same trend line, this is an indication for a retail trader to go long!
now let’s take a look at the micro view of this trade again before it happens. I want to show you how every single candle will work in the way to trap you if you are not aware of the truth behind them! ( figure 3)
in the picture above which is the lower time frame, we can find a micro Uptrend, and the latest resistance turned to support and market s accumulating above the zone and on the trend line!
what do you think retail traders would do when the trend is up and the zone is broken also in the higher time frame big macro downtrend is broken and retested???
YES, another confirmation for the retail trader to Go long.
what do they need more? TIME.
Retail traders are not stupid, they have their own confirmation but the problem is that market makers will create their confirmation so they can see, then they move against them!dylan shilts
but why it’s important that retail commit to the trade?
because it will bring liquidity to the market and that is all Market makers need.
the picture below will show you the time market maker spent on the same area and kept giving retail traders all confirmation that they need! ( figure 4)
everything looks absolutely perfect to buy until one of the Forexia mentors see this and sent the analyses to the academy, that’s when retail traders are in big trouble.GPG
the picture below is the original analysis by me that was sent with 30 pips of stop loss on March 10, 2020. (Figure5)
this pair moved 1600 pips from our entry and with our 30 pips stop loss, it means the risk to reward was 1:53 and this is only available when you trade in Forexia style!
Market Makers grabbed all the liquidity from retail traders, where I marked as liquidity pool was full of retail traders stop loss!
if you want to learn more about traps, feel free to download my free book “What Dumb Money Do?” from the link below and also join the academy to take advantage of these beautiful setups that are being shared on daily bases!