Emotions drive prices in the markets. Well to be more exact, emotions motivate people to take certain action in the markets. Most traders believe that the hardest thing to do in trading is to learn how to read price properly. The truth is that the hardest thing to do is read ourselves and minimize the effect our emotions have on trading. I’ll leave the higher level discussion to Dr. Woody Johnson, the creator of Online Trading Academy’s “Mastering the Mental Game.” I want to discuss a technical phenomenon that is caused largely by human emotion so that you can recognize it and take advantage of it.
In our Professional Trader Course we teach traders how to properly identify the best zones for entering or exiting trades. These zones are known as supply and demand. The technical level I am discussing is a variation of those levels, but… Continue Reading
