The Fakey Setup

Here is a cool video on the fakey setup by Nial Fuller, it talks about how to trade the fakey: (click one of the links for the video)

"The fakey setup I traded in this video is a contrarian approach to the markets. While we are trading a contrarian setup we still want to trade the forex fakey in the direction of the dominant trend. Essentially we wait for a false break to occur and then trade back in the direction of the existing trend.

The reason the fakey is contrarian is because you are basically doing the opposite of what most other traders are doing. Instead of trading the obvious looking breakout as most amateurs do, when trading the fakey you wait for the breakout and then take a trade in the opposite direction but WITH the dominate higher time frame trend."

GBPUSD update

Just wanted to update everyone on the GBPUSD fakey setup from the previous post I made. The setup did come off to the downside as I thought it would and ran into support near 1.5500. Price has since bounced back higher back to 1.5700 resistance. It is becoming apparent that price is entering into a trading range in the GBPUSD. It will be interesting to see what happens as this week closes out and the next week begins.