News Fake Cover Strategy

Updated: Jun 3, 2020

News Algos - pfffft. Why does the market sometimes "POP"? - a news release (mostly by an algo), breaking news or a big trader. They have a limitation though; they chuck all their volume on to quickly, POP! What happens next?

You guessed it! One of two reasons. Continuation, which is nice to take at the 50% or most likely at the 38.2% or a complete and utter collapse. Hahahahahahha! - this is where we come in - the humans, the ones with brains! Bwhahahahaha!

That's right, we don't always have to take a breakout or the bounce between lines of a channel, wedge, diagonal or pennant. We can look for the POP and if the continuation doesn't work then the cover is a close to guarantee!

The below examples are long and can easily work for shorts...

A break of the 61.8 on the upside suggests that the downside reversal entry will be at the 50% for an AB=CD target.

Don't be afraid to take this cover it is very high probability!!!!!!

221 views0 comments

Recent Posts

See All

© 2018, Inc. All Rights Reserved



Level 2,

349 Collins Street,



Tel: +61 417 006 066


Disclaimer: Trading foreign exchange and futures on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange or futures you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange and futures trading and seek advice from an independent financial adviser if you have any doubts.  Past performance of financial products is no assurance of future performance. Lepus Proprietary Trading is a trading name of Jackson Capital Pty Ltd (ACN: 165 682 842) 

  • White Twitter Icon
  • White LinkedIn Icon
  • White Facebook Icon