Fade d’t level

I would like to talk about the fading strategy I prefer. In my opinion it is the easiest strategy to SPOT and if you can see it, why cant the big bucks. It is based on my three simple rules:

1] technicity
2] velocity
3] extreme

1] In this example {playing the short side} we have the EURJPY testing the 102level (yeap, it is a round number so we have a bit of advantage already on our side – big bucks r already at this level). If the price is attacking this 102level and every time is creating a LOWER HIGH, it means that the BEARS are stronger and BULLS are getting shaken. Cornerstone number 1 of my strategy is completed – Technicity – check.

2] The level 102 is attacked strongly and the breakdown is quick. Velocity break + new extreme – check

3] The price reverses {due to the profit taking} and runs back to the 102level – big bucks are piling up around this level because the level is even more obvious and high speculative orders are attracted by this level. It reacts to the pip and creates a flip {support becomes resistance} – Technicity – check

4] previous LOW is broken strongly. This breakdown of previous LOW is creating a new level for future FADERS since. Velocity break + new extreme – check

5] Profit takers are happy with the gains, the are locking their profits and reloading – if the price gets back to the previous velocity break {101,57}, they will attack again. The price react to the pip. Technicity – check

It is a very simple strategy. Just wait for the level which was tested nicely, it is broken strongly after several tests and is crawling slowly back to this level. There is a higher chance that you will be playing with the right team.