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The key is in constant observation.Liquidity gaps are usually sudden movements in areas where the price did not spend much time.If you see a 40 pips peak in 10 minutes, it is likely that this area is a candidate for a future "filling".There is no magic formula.Everything is a matter of practice and experience.The more you study the price behavior, the easier it will be to identify these key points in the market.
Interesting what you mentioned about price ranges.If the market is in rank 80% of the time, do you think it would be more profitable to operate within the range and avoid the breaks?Personally, I find that false ruptures get me a lot out of operations, so I'm considering focusing only on ranges trading.I would like to know your opinion about this.
Operating within ranks can be a good strategy, but it is not infallible.False ruptures are frustrating, but they can also be opportunities if you know how to handle them.The ideal is to have a plan for both situations: operate within the range with Stop Loss tight and seek to confirm breaks before entering.In this way, you minimize losses in both scenarios.
I am not sure that NFP and rates decisions are always reliable high volume levels.Sometimes, the market simply reacts irrational to that news, creating peaks that do not have real follow -up.What do you do when the price does not respect those "high volume" levels?Do you ignore them and look for other opportunities or do you still operate around them?
You are right that the news can generate unpredictable reactions.If I see that a high volume level is not being respected, I prefer to stay apart until the market stabilizes.It makes no sense to operate in an environment where the price moves irrationally.Sometimes, the best decision is not to operate and wait better opportunities.
You talk a lot about the importance of trends, but how do you decide when a trend is about to end?Many times I enter thinking that it is a "continuation" and I realize that it was the end of the movement.She is frustrating because I feel that I always get late to the party.Do you have any advice to avoid this problem?
It is a common problem.One way to reduce it is to observe key support and resistance levels.If the trend approaches one of those levels and shows signs of weakness, it could be the end of the movement.You can also use tools such as divergences in Momentum indicators.Although they are not perfect, they can give you a clue that the impulse of the trend is decreasing.Remember, it is better to miss an operation than to get late and get caught.
Why always complicate so much?The market rises or low, point.Why not simply operate following the general direction and stop looking for complicated confirmations?Sometimes I feel that traders seek reasons to justify their losses instead of accepting that the market is unpredictable and chaotic.
You have a valid point, but operating without a plan is also a recipe for disaster.Follow the general direction is fine, but you need a system to handle the risk and know when to leave if things do not work.The market can be chaotic, but that does not mean that we cannot find patterns and probabilities that give us an advantage.It is not about predicting, but about managing.
Everything you have shared sounds good in theory, but in practice it is much more complicated.Saying "identifies liquidity gaps" or "operates trends" is not as easy as it seems.What are you doing when the levels you identified do not work as you expected?Do you have an support plan or simply assume loss and keep going?