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
EURGBP has shown some considerable supply on the same day as it broke the support. This earlier supply volumes were only matched by the apparently strong volumes near the support, at the beginning of the Asian session at 4th August. I say apparently, because we have to take into account that prices were nearby a previous support, and in these areas this can be just volume from retail traders buying simply because there’s a support nearby.
As the prices broke the support, with moderate volumes on the mid of the Asian session, there was a short opportunity. As prices rallied on low volumes to the broken support there were other possible entries.
There was later in the European session a strong demand signal, and just 2 hours later the market turned on yet more demand signals, this time even stronger. On the break-out setup, as in the nearby S/Rs setup, once you moved your stop-loss to break-even, you could also wait for it to hit TP instead of exiting on the first Demand signal, as in these setups, when the market trends, it trends strongly. This contrasts with other more scalping-oriented setups such as Dynamic Trend, where you should exit right in a strong signal.