On January 15th, before the #BREXIT vote took place, I wrote a journal entry with some market observation, which we do routinely here at White Oak University. The purpose of it being to post some analysis of the markets and to leave a trail to hold ourselves accountable too. Our analysis is always based on the moves of the #institutions in the markets. We study their positions, their orders, their supply and demand and track all their moves day in and day out.
When Tuesday strolled along, we were examining the $gbpusd chart looking for clues as to what the institutions would do with price. What we noticed was before the #vote took place, the big banks took out some supply that was in the markets that was considerable. We located this supply zone on the weekly chart using very specific methods that we teach and when we noticed it's removal we included this observation in our public journal and it was detailed to students at the same time.
What did the removal of this supply area tell us? Well we know that the banks don't remove their own supply without reason, and considering the current market dynamics, we knew that they had removed it and left the path open for a move to the 1.30's. So it became highly likely to see the move we are witnessing right now.
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Magic Trader
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