A further breakdown of how I read the market and all the "lines"

3월 4일

Key words to understand:
- Tapering
- Liquidity
- Tapering
- Tapering

It's important to understand how liquidity plays a role in moving price and what it actually means. In order for price to make a solid move anywhere, there has to be liquidity built up for price to grab (use) to break out of strong resistance levels (i.e. levels with lots of sellers ready to short when price gets there).

Tapering is a way of seeing a lack of liquidity by a certain side - if we begin tapering from a strong buying channel to a less strong buying channel, it typically means we are lacking liquidity to break out of that strong selling level (i.e. the top of a more tapered channel acts as a level of resistance because the more tapered it is (or the more horizontal it is), the more it lines up for all sellers to get in at the same price win the battle.

This all makes so much sense to me and it is the key for you to unlock the market. To be able to tell a story in every chart and understand who is in charge, why there in charge, and what each side has to do in order to win their next battle.

Please reach out with any questions, comments, etc. I am here for you!

Happy Trading :)