Disliked{quote} All probabilities are guesswork. Trading a channel simply begs the question of "what's the probability that this channel will become irrelevant before I finish profiting off of it?" Trading a channel right when NFP is released is a terrible idea. If the probability of losing when trading a channel during NFP's release is greater than otherwise then it, by clear logic, is a less terrible idea otherwise when NFP isn't being released. The ability to mitigate risk should never be underestimated as a tool to turn a bad outlook into a good one....Ignored
Can I tell you what I see when I study level 2 data.
If there are more Long limit orders, prices goes bearish.
If there are more Short limit orders, prices goes bullish.
The only times more Buy limit orders creates a bullish move is at a BREAKOUT that contains high volume.
By trading off patterns, you are often on the wrong side of the order books. How many times have traders felt like me "next time I choose to go Short, I will Buy instead"
The big players I believe create patterns as TRAPS - they wait until enough orders are mounting up on the charts then take them out.
Therefore they entice traders to enter by building patterns - then destroy them when the limit orders are larger enough.
Its a trap
Cheers
Trading thin liquidity at the boundary of the charts
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