This is part 6 of the Price Action Traders Mindset Video Series. If you have yet to watch any of these videos I highly recommend going back to video one and starting from the beginning here.
There are two main ways that any market moves, first way is buyers buy a market plus taking out sellers stop losses making it go up. The second way is sellers selling a market and taking out the buyers stop losses making it go down. Both ways are the core functionality of the overall Forex market or any market for that matter.
Now, let’s take a step back for a moment and look at this knowledge from an observer perspective. By knowing this we also know that if we can coincide our price action trading along side the aspect of knowing where these places are it can be beneficial for giving us yet another edge in our trading process. You see, as the market flows up and down whether going up or down or even sideways, there is still logic to these moves. The main reason overall is because the majority of traders are predictable.
PRICE ACTION + STRUCTURE + KNOWLEDGE = HIGH PROBABILITY TRADE
Now that brings me onto a third aspect in trading and that is we all should by now that in order to be profitable in this business it involves another losing a trade. This goes into the same psychological training that knowing where the stop can help.
In the video above I go over looking at these areas on the chart and knowing when they coincide with your price action can give any trader a massive edge.