You correctly identified Yen as a higher probability candidate & placed it on your radar. And you've clocked the fact it was threatening & slipping prior weekly lows whilst failing miserably to push back to prior weekly highs. Familiar footprints?
The cherry on the cake putting this pair firmly in the spotlight seeking out follow through momentum pressure however is the guy's comments regards significant levels/areas.
Leading into this week's action, price was a heartbeat away from the current yearly lows.
That is a very significant level.
If you know Yen is looking strong & you're matching it up with a weaker partner, especially one coming under pressure at a significant level, & you're looking to check out the propensity for follow through momentum, where will you receive the bigger bang for your buck playing this type of approach?
Ahead of the potentially volatile level or at the breakout zone.
Think about what we've said previously about where the numpties tend to congregate (breakout zones), where they place their stops, how fragile their psychology is & how much evidence we've presented highlighting the typical traps they continually fall into
The guys mentioned the uptick percentage in long bets as price has been slipping late last week & early this week. That illustrates & highlights they're betting on a bounce of these key yearly lows & their stops are underneath.
Where's the path of least resistance on CADJPY leading into this week's activity taking into consideration everything you know about the characteristics of this specific approach & what you’re constantly tuning yourself into?
& where do you receive the maximum breathing space & minimum damage if the lower levels are probed & once again rejected?
Where has the path of least resistance been on the Dow this month at 20160, 20440, 20650, 20835? & where within those steps were the numpties maximum pain threshold (stops)?
Where has the path of least resistance been on Gold this month at 1225 & 1245?
Where within those steps (in which the higher low levels weren't anywhere near violated) were the numpties maximum pain threshold (stops)?
Because each time they bet heavily in the wrong direction & you play the pullback into their pain threshold they're paying you to participate…..every time you take the path of least resistance you're getting paid by the numpties.