The concept of Buyers and Sellers may be simple, but mastering it is a bit more complex.
In the webinar video below, Navin will help you to identify who’s in control of the market - buyers or sellers - but more importantly: why they are in control and when control shifts.
We all know who moves the markets.
It's the Big Boy.
Every candle on a chart is a transaction that has already taken place.The chart history is basically like the receipts of the Big Boys shopping.
What we need to do is to judge the Big Boy on these receipts. We have to understand him in order to predict what he will do in the future.
If the bog boy just bought a BMW, it doesn’t mean he is going to go and buy another BMW. Same as if there is a big red candle it doesn’t mean the next candle will be big and red.
Point A is where the Big Boys are buying. An Uptrend emerges.
There is a logic with uptrends that ‘if it pulls back it will go up again’.
At point B, the market is preparing to buy. We are the market, we are buying.
But the Big Players have already got their buying done before we come into the market.
We, as the market, are coming in late.
We are buying because we are looking at the receipts of what just happened, we see the uptrend and think that we should buy now too.
But it's too late, the price has already inflated and now it starts to drop.
At point C The Big Boys are selling.
Then, at point D, when we realize, “Damn, this is now a sell” we prepare to sell.
Again, the big players have already finished their selling and again, we are too late.
Let’s take Bitcoin as an example.
When bitcoin prices were booming in December (2017) so many people thought, "I need to buy some of this Bitcoin. I need to get in on this action."
The perception was that the value of Bitcoin would keep rising.
There were so many stories of the people who got in early making a fortune, but in reality, by the time most people got in, it was too late.
In late December (2017), the prices started to drop. At this stage, the Big Players had already got out at the top.
For those people who bought at the top, expecting it to keep rising, they watched as the prices (and their investment) plummeted.
If you are working in an office and a co-worker comes in after lunch eating an ice-cream and tells you “they are giving away free ice-cream down the street’.
You think great, jump up, and head down the street to get some free ice-cream.
By the time you get there, all the free ice-cream is gone. You heard about it too late and you end up being grumpy because you didn’t get any ice-cream... just like Kanye.
Watch the full webinar above to see Navin give, and explain examples using the charts and to get a full trading strategy based on this.
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