First thing, your best trades will always be the 100% SmartEntry trades I walked through this morning. Never lose sight of that. However, there are moments in the market where a strong momentum move is engineered specifically to clear the board before price reverses in the opposite direction. When you know what to look for, these can be powerful opportunities.
Today's Example : EURUSD:
We sold EURUSD earlier as a 100% sell setup. During the Asia session, the price formed a valid Buy signal through a Trend Changing Pattern. That pattern was then broken down, triggering a strong decline designed to flush out the weak buyers before the real move.
Pre-requisites for a valid Counter Trend trade:
Major Divergence before a Trend Changing Pattern: This signals accumulation
Strong Momentum Break to clear weak buyers or sellers: the manipulation phase
No Structural Pullback during the manipulation: price is one-sided and unbalanced
Valid Primary Signal as your entry: against the manipulation move
All four conditions must be present. If they are, you have a high probability counter-trend setup worth taking seriously.
Study this carefully. Counter-trend trading is not for everyone, but when the conditions are right, the moves can be significant.
