Updated: Apr 27
The charts are telepathic!
Just kidding. Although it is mighty fascinating how price knows where you want it to go.
Or don't want?
There are only 2 ways to trade. Up and down. Some how, no matter the direction you wish, hope, want, pray, or beg - there it goes still the OTHER way.
Price moves to present itself in a fashion that creates enough sentiment to build value in places that are beneficial for some, but extremely detrimental to the collective
Why is this important? By understanding the trends that price makes when you feel certain emotions (market sentiment) we can identify strategies to combat that feeling at a later time.
These market mechanics are key to speaking the language of price distribution.
This bounce back and forth between your emotions, expected price, actual price, recent price all combine to make the days range. It feels like it never goes your way, until it does. But you already gave up. And even worse, already got in going the other direction. Doh!
How do we combat this? By interacting with the market in ways that keep risk low and do not rely on your own "current" expectations.
Learn the market beyond expectations.