The first pullback after a change of structure – you all know I absolutely LOVE these trades.

Especially when the prior structure was so damn frustrating. Because that can lead to a great move in the new direction.

<image: Pullback... with a hidden trap>

<image: Pullback... with a hidden trap>

<image: Pullback... with a hidden trap>

<image: Pullback... with a hidden trap>

<image: Pullback... with a hidden trap>

<image: Pullback... with a hidden trap>

<image: Pullback... with a hidden trap>

Same concept as always!

When we have a strong directional bias, watch for any price action that has potential to trap other market participants.

In this case, possibly tempting some to enter long in hope of capturing a reversal. Or stopping out the weaker shorts who were positioned correctly but couldn’t hold.

Watch price, placing yourself in the mindset of those who might be trapped (in or out of a position).

And use the point of their failure to time YOUR entry in the original bias direction. 

Happy trading,

Lance Beggs

 


 

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