In todays class we’ll continue to build psychology with student with proof everything have to be proven .
Thus today we’ll prove why trend channel is a losing strategy but itself ( the common method of trading them ) and why everyone’s focus should be on. The range market.. the makeup of a range market must be understood and as was taught ranges are like magnetic vol must be applied to keep price out of them this is why fake breakout places price at the opposite end . Thus we can conclude if price trends away from a range than the action is done by smart money.
Yesterday class we discussed this in depth.. a very beautiful session n too much to
share here.
Here we have the trendlines spaced away so we can focus on the what going on n then see how easy it is for them to manipulate these lines
First the range
Note divergence into it circle and then a breakout of the range
Thus we can visual see the move out was fake no vol was applied or price would be strong leaving out
Next a divergence that return price to the range with a big bull bar
Interesting look at the orange circle here.. if this was a retest of the range
Why did is micro range within a range after a breakout from the range?
If this was rejection of the range then why the next move out is a narrow bar ( purple)
If the market retested the range as a rejection or to grab more orders we should see vol in the purple bar ..
everything looks very weak to short the move
Now
Let’s apply the channels
What we see is a rejection of the channel high in orange.. multiple touches in session can easily give the illusion of strength to sell and encourage what ? Retail to short the move and place their sl right at the channel ..
And what happens so much that it’s unbelievable traders still trade the same way.?
Price returns n breaks the channel using their sl as momentum to go in its intended direction ..
This is the main reason why we don’t use trendline like this we use them to see how they will manipulate them against traders as confirmation to trade ..
Thus today we’ll prove why trend channel is a losing strategy but itself ( the common method of trading them ) and why everyone’s focus should be on. The range market.. the makeup of a range market must be understood and as was taught ranges are like magnetic vol must be applied to keep price out of them this is why fake breakout places price at the opposite end . Thus we can conclude if price trends away from a range than the action is done by smart money.
Yesterday class we discussed this in depth.. a very beautiful session n too much to
share here.
Here we have the trendlines spaced away so we can focus on the what going on n then see how easy it is for them to manipulate these lines
First the range
Note divergence into it circle and then a breakout of the range
Thus we can visual see the move out was fake no vol was applied or price would be strong leaving out
Next a divergence that return price to the range with a big bull bar
Interesting look at the orange circle here.. if this was a retest of the range
Why did is micro range within a range after a breakout from the range?
If this was rejection of the range then why the next move out is a narrow bar ( purple)
If the market retested the range as a rejection or to grab more orders we should see vol in the purple bar ..
everything looks very weak to short the move
Now
Let’s apply the channels
What we see is a rejection of the channel high in orange.. multiple touches in session can easily give the illusion of strength to sell and encourage what ? Retail to short the move and place their sl right at the channel ..
And what happens so much that it’s unbelievable traders still trade the same way.?
Price returns n breaks the channel using their sl as momentum to go in its intended direction ..
This is the main reason why we don’t use trendline like this we use them to see how they will manipulate them against traders as confirmation to trade ..
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.