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Certainly! A simple price action concept can indeed revolutionize your overall trading strategy. In this discussion, I’ll delve into a trading concept that not only transformed my journey from a novice trader but also continued to enhance my understanding of the market even after transitioning into full-time trading. The key principle here is the fundamental concept of buyers and sellers.

When I initially ventured into trading, the complexity of predicting price movements was overwhelming. The central challenge for many traders is anticipating where prices will go, as this knowledge is synonymous with profit. Although numerous tools and methods exist for this purpose, the most straightforward and foundational approach lies in comprehending the dynamics of buyers and sellers within the framework of price action.

Understanding the interplay between buyers and sellers is pivotal in trading, as their dynamics dictate market movements. In essence, when buyers outnumber sellers, prices tend to rise, and conversely, when sellers dominate, prices decline. The deeper implication here is aligning oneself with institutional players, particularly banks, as they wield the power to influence market liquidity. This becomes especially crucial for retail traders who lack the capital and resources to sway the market independently.

Outlined in three steps, the process involves identifying the prevailing trend. If prices are ascending, it signifies a buyer’s market, while a descending trend indicates a seller’s market. Using the daily timeframe of gold as an example, the visual trend becomes a clear indicator of market direction.

The second step focuses on intricate details like market structure. Sellers, when in control, instinctively seek liquidity by targeting lows, while buyers do the same for highs. Recognizing these behaviors is essential for traders to align themselves with prevailing market conditions. Analyzing a chart exemplifies how sellers, identified by lower lows and lower highs, influence market structure.

The final step involves concentrating on specific levels based on the understanding of market structure. For instance, in a seller’s market, buyers target highs for liquidity, and recognizing this aids traders in strategic decision-making. This comprehensive approach enables traders to navigate the complexities of market movements on various timeframes, distinguishing between temporary pullbacks and sustained trends.

In summary, grasping the dynamics of buyers and sellers empowers traders to position themselves effectively in the market, enhancing their ability to make informed and profitable decisions.

Certainly! Here’s the passage with the passive voice removed:

“We pushed back up, same thing here. After price moved down a little further, we started to see price pull back. This gives you an understanding of the objective being complete. Maybe I should wait for a pullback now because there’s a strong chance that sellers have completed the objective in the meantime, and we’re going to get some temporary buyers, which we are likely to see at some point in time. That’s what we’re seeing; we saw a little pullback here.

The other thing to focus on is the Candlestick. I like to say candlesticks don’t lie. Candles don’t lie, guys. In a seller’s market, what you’re going to notice is, if you’re not looking at trend, market structure, and all those things you should be paying attention to, but if maybe that’s not clear and you want to figure out another way to identify who is in control of the market or another way to follow the money, as I like to say, is to understand the volatility of the candlestick and the strength of the candlestick.

In a seller’s market, you’re always going to see bigger candlesticks than the buyers because that’s where the weakness is coming from. We are in the seller’s market. If you can take a look at these examples here, you can see that the candlesticks are massive. For example, it took seven bullish candlesticks for price to get up here, and it took three for price to essentially cover half this move. That right there tells you, hey, this is a seller’s market.

Maybe you haven’t executed a trade yet and you’re thinking about it, and you see three candlesticks right there. These three candlesticks are bigger than any other candlestick you’ve seen in the last couple of days or weeks. It tells you that there’s a strong possibility that liquidity is flowing down. The institutional flow is to the downside; capital is being poured into the market, and it’s going lower. Sellers are coming in. Even if you see a pullback, more sellers are still going to be coming in.

Candles are one way that you can identify the concept of buyers and sellers, in addition to paying attention to market structure and the overall trend. That’s the video, guys. Thank you for watching. I wanted to introduce you to the concept of buyers and sellers and how you can use that to identify who is in control at any point in time by identifying the trend, focusing on market structure, and paying attention to the candlesticks. Those three concepts, those three steps, are going to help you get there. Once again, thank you for watching. I hope you found this video insightful. Don’t forget to like and subscribe. See you in the next video. Cheers.”


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