Market nature explained. EURUSD example

Market nature explained. EURUSD example

I always say – the market is made in order to produce as many losses for people as possible. Bernard Baruch said this before me. )))

If you start thinking from this basic true ground, it will be easier for you to understand the reasons for certain movements in the market. Take an example from the EURUSD market, today’s trading, 15m TF.

1) On a fresh background, we have a downward trend. What happens during a downtrend?
2) Sellers are increasing profits.
3) Move your SLs down.

But the market is not beneficial for people to have a lot of profit. Therefore, what usually happens in such cases?

4) The market hits the stop loss of buyers and …
5) … goes up to beat the stop loss of sellers.
6) bang bang! If you defended your BUY-stop shorts at this level, congratulations. You were knocked out of position. Pay attention to activity (trading volume). We have a surge. But if this surge reflects true strength, why then did the decline begin after 30 minutes? Because SLKT is not a sign of strength, but a sign of hidden weakness.

Well.. If the downtrend is really about to resume, then the market is ready. The number of sellers in profit was significantly reduced in order to prevent their enrichment.

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