Here is A mark up of one of my favourite setups to trade, of a live example that students and I capitalised on earlier this week on US30.
1. Identify trend & Momentum.
2. Wait for corrective move & inducement pattern (wedge)
3. Once price breaks the wedge to the downside this stop hunts the buyers who where anticipating the breakout.
4. Now buyers have been removed but also Sellers induced because we instead broke out to the downside.
5. Therefore creating liquidity to the upside which is the direction the market wants to move.
6. Price then makes a final re accumulation just above our zone of confluence (final inducement).
7. Price then sweeps the re accumulation lows (final stop hunt) and taps into our zone of confluence = 0.618 from impulse low to high & 1H order block.
Conclusion retail sellers and buyers have been taken out the market finally makes the intended move. STUDY this setup for high probability high reward trades.
1. Identify trend & Momentum.
2. Wait for corrective move & inducement pattern (wedge)
3. Once price breaks the wedge to the downside this stop hunts the buyers who where anticipating the breakout.
4. Now buyers have been removed but also Sellers induced because we instead broke out to the downside.
5. Therefore creating liquidity to the upside which is the direction the market wants to move.
6. Price then makes a final re accumulation just above our zone of confluence (final inducement).
7. Price then sweeps the re accumulation lows (final stop hunt) and taps into our zone of confluence = 0.618 from impulse low to high & 1H order block.
Conclusion retail sellers and buyers have been taken out the market finally makes the intended move. STUDY this setup for high probability high reward trades.