Hi Guys – Just another Opinion Piece
RESISTANCE IS JUST AN AREA WHERE BIG PLAYERS PLAY THEIR PSYCHOLOGICAL GAMES
They create a Bias in traders head of Buy or Sell because they know how the learning materials they learn from read. The learning material which is of course designed by Market makers and Brokers to spin this lie that Resistance is a tangible zone on a chart and you should draw a line here to base your trading decisions from. They tell you to trade away from resistance and place your stops below this line. They do the same with Trend lines ( Spec loves them? ) and so create a psychologicalVISIBLE barrier in traders minds.
“THIS MUST BE LIKE A BRICK WALL - LOOK ITS BOUNCED TWICE BEFORE -
I WILL BUY AND PLACE A TIGHT STOP UNDER THE LINE”
This is where Spec comes into the picture just like last night. Spec took the bait and brought GBPUSD and he did in fact state he had a tight stop.
GAME – SET – MATCH to the big Players.
This is how I saw this price action played out.
1.. After a nice move upwards, the Big Players were running out of Orders to BUY so they had to create a consolidation zone before selling. After their first small run downwards which is normally 10-25 pips, they picked a nice spot to stop which just happens to be a Monthly Line close.
2.. Therefore to make money, as there is no further Sell or Buy Orders available in high numbers, they have to create them.
3.. They then send it up a bit higher to create a higher high which will convince retail traders to start Buying again.
4.. So now they are Selling because it’s the only way they can make their money.
5.. They continue to build this Psychologial wall in traders minds that this area will hold by going up and down about 10 times.
6.. So like every trading manual states, BUY at RESISTANCE and put your STOP BELOW Line.
7.. Spec looks at his Trendlines and goes – YES I am Buying.
8.. But the Big Players haven’t got their Sell Orders fill yet so a few more cycles here should be enough.
9.. Now I am thinking they are going to Sell because there is a Big Void below with no old orders, and there is little Orders above. I know they are Building their Sells and they will NOW be able to close them in all those Stop loss orders below that False Line. They have been building a False Buy Bias over a few days have now have all the orders waiting for them to close their positions.
They send it down about 15 minutes after I opened 3 trade positions – SELL SELL SELL
ITS ALL ABOUT MAKING MONEY - NO HARD FEELINGS RETAIL TRADERS
