As humans we eat to survive,its not a want,its a need.We die without it.
Electrical goods need power/electricity to survive,its not a want,they need it.Without it they cannot function.
Planes trains and auto mobiles need petroleum products or eco power to run,without fuel they stand still.
You get the picture...............
The market is like anything else on the planet,SHE NEEDS TO FEED.
She is a ravenous beast,constantly searching and then feeding.
When the beast is hungry,what does she eat?
(i say 'what' and not 'who' because it doesn't matter either way too her,she feeds regardless,she is not partial).
Once you have answered the above question correctly,answer this question: Where can she find the BIGGEST meal?Because that's where she will go to feed
The professionals(very few)are the ONLY ones who can correctly answer both the questions above.
They are the ones who trade from the raw structure itself.
When you understand how the market works,your trading chart looks like the one i have attached.
You know,it's so ironic and almost comical,because the very first time a trader opens a chart,it is at this point,he is the closest to success.
It's a crazy world.......
The following user says Thank You to switchtrading for this post:
You are ascribing human attributes to inanimate things through their relationship to your perception. The market does not "eat". The top of the food chain market participant though, makes a living killing and eating the less skilled or unprepared.
The "enemy" or predator however is almost always "self" as the specific weak are not directly or specifically targeted... rather weak are consumed because of their own own foolishness.
The market is on a hunt for LIQUIDITY,whether you have thought about it or not.
The professional understands this,and this is one of the reasons for his/her exceptional success.
The other being,as you noted,getting their 'head' together.
Ideally it would be nice getting yourself together before you even look at a chart..But I am not actually sure you could prepare yourself for such things prior to.
The weak are consumed because of their ignorance.You would have heard of the saying:"You don't know what you don't know".
I have seen traders fail not because they were foolish,not because they were lazy nor because they didn't make a concerted effort to improve themselves mentally.
I see traders failing because they put all the hard work in focusing on the WRONG things.
Wldman,would you be kind enough to share with me your chart set-up please?I would really like that.
Btw,if you send me a blank chart lol,from memory it could be the first blank chart i've seen from a trader.
When i look at a price chart,it's not how the majority look at it.
I wonder how many traders made the assumption that i was a new trader because this was my first post? lol.
I hope you enjoy reading my 'very bold' second post.
Thank you wldman,i appreciate you spending some of your time to send a chart through.
There are many weird things happening all the time,but that's ok.
I totally agree,that's why we have forums,to share ideas about what we do.
My last statement regarding assumptions and first posts was made as i've seen traders in other forums make posts for the first time,i always wonder to myself if they are experienced or just starting out.It was my first post here,therefore it crossed my mind.
If you don't mind me asking wldman,why are you using the chart if its not exactly what you want?
I find your statement quite fascinating.
How would you change it so that you would no longer need to make the above statement?
It doesn't make any difference what you add or take away from the original structure,the information that's needed was there when you first opened up a new chart.It will always be there.
The reason why people put things on their chart is because there oblivious to the fact that the information they need is right there to begin with.
Now,am i saying that if you add a CCI and trade engulfing patterns you won't make any money,absolutely not.
But what i am trying to say is that the chart offers the greatest rewards when looked at in its original structure.
Time frame or instrument doesn't change anything,its constant.
I often hear traders saying that their system only really works well on the GBPUSD or the ES,if you ever hear anyone say that,turn and walk the other way...................quickly.
Attached chart USDJPY spot.If you understand what's happening inside the red box then you will understand also what's outside of the box and your price chart will resemble what mine looks like.You will notice i don't have anything on there,no gann/fibs/indicators/price extensions.....nothing.
As price moves across the box with time,the 'BOOK' is constantly evolving.Buyers and sellers are adding to,and taking away from the book as time shifts.You don't need to know order flow or see the book,you need to understand what is being created when traders are interacting with one another.
As the market shifts across the box,pockets of liquidity are being created,and between the pockets,well these are illiquid.
When you're ready,you'll understand everything i just said.
The email i received alerting me for a new post contained extra than what is provided here on the forum.
Not sure why that happened.
Anyway,it has nothing to do with my brokers charts or the data.
It also has nothing to do with the range.
I have attached your same gold chart,marking boxes on it.
The boxes are just zooming in on segments of price on the chart.Its not an indicator and not range related.Its just a small snippet of the structure,you see the same movements outside of the boxes.
For ANYprice movement,ask yourself WHY?
Blue Box:Ask yourself WHY price is moving like it is.Please don't say its in an up trend,because you can say that till your blue in the face and it won't make one ounce of difference.Because there are retail traders trading the right direction and still lose.And maybe yes,it has a little to do with their head space,but even still.
Ask yourself why does price move through highs and then retrace in an up trend?Why does it retrace deeper or shallower than other times?
Green Box:When you understand you will be able to tell in advance IF a price will take highs out or not.
If i was looking at gold,i could have told you well before the highs broke that it was ALWAYS going to take those highs out.
The structure was yelling that out to everyone the whole time.
And its not because its an up trend either LOL.
1.Open a blank chart
2.For EVERY price movement on that chart,ask yourself WHY?Nothing to do with Fibs/GANN/indicators or whatever else you know. It has everything to do with a traders need for protection.This need in turn will naturally create pockets of liquidity.Between the pockets will be illiquid.
For every action there is an equal and opposite reaction.
Price will move up until one of two things happen:
Buyers consider prices too expensive to continue buying.
Sellers consider prices attractive enough to start selling.
The latter of course, is synonymous with 'finding liquidity'. Buyers being more aggressive and taking out all seller liquidity at higher and higher prices until they get to a place where many sellers are residing.
When sellers become more interested, price may not necessarily move down. The market may balance for a while.
Of course, predicting where liquidity resides is different from understanding the mechanics of price discovery.
The following user says Thank You to DionysusToast for this post: