7/08/2016

long against late sellers

this is a nice speculation against late sellers. it is basically a deal into the direction of a bullish trend, where i use the late sellers´ liquidity to book my profit.

the idea behind this is simple - by a long/fast bearish candle retreating from the high, the market tempts the late sellers that had missed the reversal at the highest high to jump in now. because now it is confirmed that the market took a turndown, the late sellers go into it, these are the guys who always wait for the confirmation, who always want to play safe, who never sell the highest high because it is "too risky".  obviously, they lose everytime, because they are late everywhere.

at the same time i can easily identify the accumulation of volume for the 1. target (the secondary liquidity of the high sellers that could be pulling their stoplosses into their break-even levels). this allows me to make the deal risk free




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