EURGBP M15 – Break-out Trade
In EURGBP there was a short opportunity at the start of the week, as the support was broken. In this setup, one of the important things to watch for are weak signals before the break, which there were on the last market top. This guarantees there is a ’cause’ for the prices to go down, since it means the smart money had started distributing, effectively betting on a successful break-out. From there on, the sequence for a result of +27 pips was:
1. Weak background
2. Enter in an up bar near the broken support
3. Close in the TP level the alerts indicator suggested. Right after, there was a very strong demand signal that reversed the market
When you refer to point of broken support (near 0.71015) there is demand point & no supply point on your chart shown !? So by VSA reasoning is it not expected the price go up instead of go down ?
Yes you’re right, there was minor demand, but minor signs like that near a broken support are usual and nothing to worry about: that’s because there are many stop-losses being hit, which exerts some demand on the market.