Hello friends. The good old Scam Top is a classic and powerful pattern. We see them on all time frames and all markets.
You will spot this pattern when you see an extreme move up followed by a retracement down and then a move just slightly above the prior high. That move higher is the "scam" that that snatches liquidity for large traders by taking out retail stop losses. This way they can push prices lower once they have shorted enough.
The Volume Profile helps us to set a target, since it shows there is a good chunk of support which we want to exit before.
Thanks for playing.
You will spot this pattern when you see an extreme move up followed by a retracement down and then a move just slightly above the prior high. That move higher is the "scam" that that snatches liquidity for large traders by taking out retail stop losses. This way they can push prices lower once they have shorted enough.
The Volume Profile helps us to set a target, since it shows there is a good chunk of support which we want to exit before.
Thanks for playing.