 Good evening guys. Just gonna make a quick video on the pound dollar and this was a gap CPR trade that we had analyzed last week Wednesday and if you missed it, obviously Everything is recorded. So if you go back to the 16th of December on our group call right here What you'll see is you'll see Basically the analysis right of where we were talking about where the pound dollar CPR Zone would have been and in this video. I pretty much mark out exactly why that area I don't know. I can't see it there, but it was basically where that Support zone was And you can see pretty much how it played out which was very nice So we dragged this across and I've been the one for you to so you're waiting for a basically price to come down here and this would have been the the zone obviously the demand zone we were talking about in the videos anything around there is what we should have been looking for and Again, just to just to go over that zone and understand why This was a really, you know top-notch trade, I think it was fixed that pointed this out and he This is the reason why I went over it last week and I go over it again quickly. So what happens is is that you've got You got traders that are pretty much in you know last week on the fainting for December Who would have been going short? Yeah, and what we're trying to do is we're not trying to Trade how everybody else trades and support and resistance. We understand that traders, you know, we need an edge in The game in the market, right and it's zero some game edge where money's not made. It's taken Yeah, it's taken from and money is transferred from the loser to the winner and one of the ways that we can do that and Help facilitate that is by understanding where losing traders are and there would have been a whole bunch of losing traders around here Why because they would have expected prices to go to the downside and you can pretty much see this, right? You see a nice area of support You see another area of support and you get what breakout traders remember There's only three traders breakout traders retracement traders and level traders, yeah Those are the three types of traders many different strategies, but those are where you know, they they will all decide and then what you get is Prices gap up here And there's an argument that does say that there would have been traders that would have You know been taking profit off of the weekend, but lost traders don't right but so But there's definitely demand here either way you look at it because Prices pretty much gap up so as prices started to Go to the upside a lot of traders who you know were holding swing trading Based off of this, you know lower highs and lower lows and typical price action Would have been caught in their positions and again many traders would say well, wouldn't it be stopped out by now? and the answer is no because Um traders suffer from something called loss aversion bias. Yeah loss aversion bias Which basically means losses feel worst and gains feel good and how that plays out in the forex market is That traders will move and remove their stop losses to as prices go against them and they're seeing Rather than losing let's say for example, you know two percent on the trade now They're down, you know 10 percent as prices go against them and they don't want to realize that loss Yeah, they do not want to realize That loss they don't want to crystallize the loss So they they hold and pray that prices are going to come back But as prices are going against them and keep going higher, right? They're caught in their positions And this is the pain phase as well because as prices are going against them and they're you know, unrealized profit So unrealized loss. Yeah is uh Is getting bigger and bigger at this point Yeah, so they thought that here that there would have been some sort of you know relief What prices made that gap would have filled And the next best trade in the book is what a break-even trade or a small loss after being down Maybe 10 15 20 percent 30 percent If you get to maybe, you know, maybe back to your, you know, two percent original two percent loss or even three percent or even five percent You're going to take that after going through maybe, you know, seeing your unrealized loss at maybe 25 30 percent So because you're going to thank your lucky stars, right? And that's what traders with lots of version buys do So anyways continuing on this is the pain phase. Yeah, so this is all pain because again, they're unrealized loss um is uh Is is causing them a lot of pain and praying and wishing that prices can come back down to at least a small loss and what i'll do is See that when prices came back down into this area where these guys were originally caught Yeah, so they caught in their positions They get and this is the pain phase They get somewhat relief and all this is it's just understanding the supply and demand equation at a Level right at why is it likely to be more demand than supply? Or why is it likely to be more supply than demand at this area here? Now none of us know the exact turning point none of us know But what we do know right is when we're talking about the zero sum game and understanding and trading against our opponents is understanding that anyone who went Short here. Yeah to exit or to take profit at a small loss They have to do what they have to buy if they sold here is the opposite transaction Buy is buying and buy orders are what demand. Yeah, you've got traders who sold up here Who are looking to take profit where at a problem area where prices have previously reversed here and also here yeah, so They're going to take profit where especially doing you know during this drop down here, you know, they're going to take profit here That's more buying which is more demand. Yeah, and then you've got traders that simply just will buy at levels of support and resistance And again, we've got support resistance there And then you've got support there right on nice little pin bar. That's more buying Yeah So this is the reason why we have more demand from a technical analysis perspective than supply Yeah, there's more. There's likely to be more demand here than supply. You can pretty much see What happened? Yeah um So that's pretty much it and again, like I said, we went over this on On the last week Wednesday, you know, you can watch the video go to around 48 47 minute mark You can you know, you'll be able to see it. Yeah, so this is where I'm explaining it from the beginning So 47 minute mark and we're talking about this, you know, this currency pair Again, I didn't take the try didn't take the trade because um of brexit. It's a bit too volatile But you can pretty much see um, you know technical patterns You know, it it play out Of course, it might not have played out because it's all to do with fundamentals, right? We need our fundamentals and risk sentiment analysis And if we're unsure about that from the from the top, then I don't care what technical analysis is saying You know risk sentiment and fundamentals do come first But this is a great exercise and understanding just pattern recognition Understanding the mechanics behind it and if you did, you know, get along almost saying it wasn't a great trade technically technically I loved it and I say that in the video. I love this trade technically It's just that I can't take it based off of buying the british pound In in these volatile situations, right? There's a lot of volatile situations And with brexit and nobody knows whether deal's gonna get done How the pound is going to react? They're a better fundamental when risk sentiment trades out there personally So this could have easily had gone, you know, the other way because as we know fundamentals and sentiment A word drive price fundamental as technical analysis doesn't drive price But just understanding this whole process and how you know, really good this this trade was from a You know from a from a capture pain relief perspective These gap trades don't happen too often. Yeah, and there's another one actually up here Right, if you want to actually get short at the moment, that's a really nice short This whole area would be an area of supply Because everyone who's everyone at the top of the this market, especially at the highs is definitely caught in their positions At the moment So this is the beginning of a potential reversal around here again I'm not saying that it is whether it is or it isn't right I think if anything probably there would be a gap CPR But the best areas obviously to look for sell trades are going to be I'd probably say around here anyone who's who's gotten long at that Level there above that level. So let's just do that So anyone who's got long definitely at this level here From this one three five up to this one three six is definitely caught in their positions But from a gap CPR, you've got it here as well. I think but that And if that doesn't work, you know turn around right there Then the second entry depending on where you place your stop if you require a second entry, but The underside of this would be a great short technically but again it's just The pound at the moment, you know dealer no deal is is really putting a A For me anyway, it just makes it very uncertain And like I said, there are there are better fundamental trades out there and risk sentiment trades But doesn't mean that you can't take it just maybe risk, you know a lot less than what you normally would And trading over the Christmas period anyway for me Is, you know, not not not really I'm not really entering any new trades over the Christmas period Apart from necessarily I will be maybe looking at into 2021 new year maybe first second week But just in general, I'm not necessarily looking to take any new trades But this is again just an example of You know how the trade played out, but this Is a nice again another really nice technical trade And if you do want if you do think that the the US dollar is a bargain at this price, that's what you know Really matters fundamentally And if the British pound if they don't do a deal in the end then again that is going to be a really nice short so Fundamentally but again, that's up to you Wherever you want to take that trade over Christmas with low volatility, etc. Anyways guys take care And I will probably post a couple more videos this week in the group If I see any, you know, you know setups or whatever if anyone's got anything they want me to look at just post it in the In the relevant channel and I will try and get back to you guys ASAP, but again If I don't speak to you before Christmas, I hope you have a merry merry Christmas Enjoy the time off and you know, we'll get back to you know some proper trading and real trading when the markets return All right guys take care speeches