I think i just caught an MM setting a trap!

Trading Systems
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MM trap narration.jpg700×438 63.9 KB

18 11 2014 09 37 23.jpg700×438 60.3 KB

18 11 2014 09 29 23.jpg700×438 60.7 KB

Looking through the images you’ll see what I believe to be a trap set by the smart money. Can anybody confirm this? I’m a bit of a noob when it comes to this stuff - just looking for some confirmation on my hypothesis.

(Sorry about the image order, it was supposed to be the other way around.)

The last image shows how the candle was halfway through. Then it completely changed and went back up in the succeeding screenshot. I fast forward a couple of hours and then you see the bigger picture. If it hadn’t been for the volume giving it away at the end - i’d have gone long. I’m sure other people did too. But thanks to the weakening volume i knew the position was weakening & bound to reverse.

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There where you said is a trap, that is a big sell order (the big green bar going up).
Oanda, GBP/USD analysis shows LONG:60.60% SHORT:39.40%
Long term it is going down. my2c.

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I am familiar with VSA in the Forex market. Unfortunately the charts are unclear but from my observation of the ascending triangle I would not call it a trap in my opinion. I am going to throw a really wild guess that this move was a result of the market reacting or anticipating the purchased bond figures from the ECB, which were EUR 2.28 billion. There was a reaction to the release and yes it was not the economic calendar, some key things aren’t unfortunately.

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Okay thanks guys :slight_smile: and I’m currently reading into how bonds have an effect on currencies!!! Extra reason do so now - thanks again.