Now I could break down charts continuously and explain this process over and over. Hindsight is what it is, of course I am going to be able to talk you through this process because I can see what has happened.
This is where understanding why the importance of paying attention to trading what “THEY” see, can determine whether or not you will profit from the price manipulations from the market makers.
The idea is to get used to seeing this behaviour develop. It always repeats. Why? because the market makers understand how to make retail traders, banks and mutual funds believe, that if price is going to do one thing e.g. test support, then everyone else watching the chart, will be thinking the same. The skill set is in understanding what the market makers are trying to achieve by exploring their behaviours at key areas of interest.
This may sound cryptic in its nature, however by simply putting nearly 9 years of trading/watching charts into a small blog post, well you’re better off buying knowing this before depositing money into a trading account.
The business of trading, is the market makers business of extracting money from others’ pocket to their own. If we, as retail traders, develop an understanding of how the market makers do this, we can profit from this behavior. As I said earlier, simply by following what the market makers do and training your eyes to see these price manipulations, over a sample size you are more than likely to make a profit. The reason I say this because the same behaviour is repeated over and over again. Why? Because human behaviour simply does not change.
You can follow Tino on twitter at @Tradersreality and visit his website at tradersreality.com.