- August 17, 2018
- Posted by: Joe Fendy
- Category: Blog
Why Most Traders Need A Better Understanding Price Action Manipulation Trading:
Price action manipulation trading is a unique form of chart reading skills that allows traders to decipher the intention of the big boys and take on high probability trades alongside them. Through the art and science reading manipulative price action, the trader can avoid the common psychological traps faced by normal retailers.
Above is the Bitcoin chart back in 2017 where the market rally sharply towards $20,000 price level. The majority of the retailers will be lured into this kind of markets thinking that they do not want to be left out from the “hype” and hence will tend to chase the price movement from $16,000 to $20,000. On top of that, the media and news channel are heavily reporting positive news about Bitcoin, psychologically inducing normal retailers to chase the obvious upside movement in price. I believe we all know what happens after prices rallied towards $20,000. Bitcoin crashed all the way to $6,000, a downside retracement of more than 70%. Many retailers who bought into the hype were slaughtered and many constipated in their cryptocurrency holdings. Such scenario as described above was common throughout history both on the long side and the short side. While the big boys profited tremendously from the manipulative price movement, retailers were left licking their wounds when the market they bought into crashed later on.
As the legendary trader, Jesse Livermore famously said “The stock market is never obvious. It is designed to fool most people most of the time” When the hype is obvious to everybody, it is usually the most dangerous time to buy. The real winners in the stock market are the ones who get in before things get obvious to the public. Such a psychological understanding of the markets is the core concepts and principles behind price action manipulation.
Understanding Price Action Manipulation trading is one of the good steps for a person who is new to trading or for an experienced trading who is interested to know why the market charts moved to a certain surprising direction?
If you are interested to know more about Basic Trading 101 (using Price Action Strategy) or Interested to attend our FREE 3-Hour Workshop on Price Action Manipulation, feel free to register in the links below:
#PriceAction #PriceActionTrading #PriceActionManipulation #XSPYtrader #AlsonChew