Predicting Price Movement In An Unpredictable Market

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Even though price had already been at the higher area before, the sellers needed to be absorbed before it could move on to the next area of supply, as shown below.

Again, we see the Supply catch out those buyers late in the move. Just as the lower zone was broken, price rallied into another area and dropped hard, returning to where it came from before the news the previous day. No wonder people find the news frustrating. My question to you is this: did you really need to read the news and attempt to decipher the fundamentals behind The Fed’s actions to find good trading opportunities, or could you have just followed the footsteps of supply and demand?

I’ve been in this business for too long and have seen too many examples of the institutional footprints on charts playing out to worry myself about how and why news plays out in the markets. Often, I just follow the big players and let them make the decision for me. When I’m wrong, I lose a little and when I’m right it works out well. Who do you think you should be listening to in the long run?

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