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Forex Asia Breakout Trap / London Breakout Strategy - Big Market Moves
now the last chart that I wanted to talk about in this week's commentary is the Euro CAD daily chart yourself spotted some interesting price action happening on here with obviously going to see this key level through here alright price has been moving down then we've got this congestion and so so we can see that this level was acting as some strong support there actually had a nice false break above this level here and then we're seen prices pushed down through there then we had some more consolidation and then price bust up through here some more consolidation and you can see this level is acting as support again now we actually have a signal here waiting for us there's a bullish outside day signal now what's happened here is price has during the asian session has broken the lows of the previous day and tested this level it's not a very big false break that it's there and because it's testing this level I thought it's worth a mention and what's what's happening is prices come down made this small false break and then just shot straight up okay and breach to the highs of the previous day and closed higher so this is a bullish outside day signal now one thing you can do and this is what I do a lot because I tried these setups live we could say that the more the more an Asian trap breakout set up agent trap breakout and reverse setup there you go so here's one here we've had this candle here during the asian session shoot up okay make an attempt to push prices higher trapping the Bulls okay we've seen price go move higher and then collapse straight back down through here okay and then we've seen this powerful bearish move down here and the trigger to get short would be when price breaks the previous day's low so I'll just go that quickly again the first part of the setup is during the asian session price breaks one end of the candle causes a false break and then shoots back the other way and then your trade is triggered when price actually busts through the other end of the candle and what I normally do is here's my entry jump in with the momentum and I'll put my stop up through here now this did see a decent bearish move down it is what this trade wasn't exactly didn't exactly produce the best risk reward but you would be surprised that these type of outside bars outside days that get created with these Asian breakout traps how big of a move they can actually kick off so that's what that's exactly what's happening here just on the other side now we've had the one end of the candle previous day's candle breached in the Asian session okay it struck traders in the wrong direction and then seen market shoot up the other way and they'll trigger to get long if you traded this live would have been when price did breach the previous candle high but that doesn't mean whether we can't trade this one I mean price what might open next week and might get a retest of this old high or we might get a 50% retrace entry personally out I'll be thinking about taking a retest of this previous candles day high and I'll be looking to have my stock down there and I'll most likely target these highs up here so I'll definitely get my least two times what I've rest there so keep an eye out for this one watch this price action and see what happens keep an eye out for the for these for these false breaks that happened during Asia because they if they do fail they can create very powerful moves in the opposite direction and actually I think there was recently one on the Australian New Zealand dollar chart so we'll pull that up and I'll show you exactly what I mean all right so here's the Australian New Zealand dollar chart let me just show you again that agent breakout trap that creates these outside day signals here's one here okay we've had a he's a significant level here we'll just won't go into detail that's just a resistance level that we've got mark marked on the chart look at this day here price broke its highs ok calls that asian breakout trap and seen price just shoot back the other way ok and we would have been triggered in when price breaks the lows of the previous day another one here ok price did that false break and then shot back down the other way and it would have been triggered into a short trade here and here is another one here ok again break out the top take the trade as it punches out the other end again here's another one this charts on fire false breakout there okay trigger as we punch through the other end of the candle okay here's a here's another one okay break the highs and then we are triggered as price breaks through the other end okay so you can see those multiple trade opportunities there what's there any bullish I can't spot any bullish ones at the moment here's another one here okay I see false break the bigger the false break the better generally the the more powerful the birth of the failed breakout then the more extreme the reversal move is going to take place so we've had this big false break we've come back down here that's where we were triggered into the shorts okay and then we just seen price just chopped straight through there and that's all I can spot on the charts at the moment there's been quite a few on this one so I'll just leave it there all right guys have a good weekend and I'll see you around the war room for next week's trading