Why You're Trading The Markets Wrong || Every day = Trading Strategy
99% of new traders make this very common mistake , the mistake is this :
We have a very classic setup right here:
Price made this high:
And then comes back up to it and breaks right through it
If you're a new trader this is usually where the mistake happens.
Most new traders will enter a long position right here:
Because the chart broke through this hight , and it's starting to look pretty bullish:
This is a mistake ,
The market always targets liquidity:
Then after it'll want to come back down to an imbalance down here:
Then repeat the process:
So if you want to predict what the market will do next , just do this:
We have liquidity at this highs , right here:
And we have liquidity at the lows , right here:
And usually we'll have a fair value gap somewhere down here , on a higher time frame:
Price will break these lows , I.E taking this liquidity:
Come to this fair value gap:
Start reversing , leave another fair value gap , take out this high (at the second red line) , I.E taking more liquidity , come down again to this fair value gap (at the first yellow bar) , then it'll want to take out the high , it may be before I.E taking even more liquidity:
Then it'll repeat the process:
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@mohcinhalitim
Great trading strategies explained by you but it's not allowed to post here generalized topics