Understanding Market Price Dynamics

What's essential, you have to submit to the level of time, which no one knows how much time is going to be required before your setup pans out or goes to profitability.

Price is what you're studying. You're submitting to time throughout the process, but while you are in the trade or expecting this to unfold, studying it, you're submitting to the price.

In other words, you're not trying to force your will on price.

You're analyzing price to see what it is that's telling you in terms of institutional order flow.

Is it justifying your expectation that it wants to go down to that discount level or some bullish order block to buy back off of and cover a short position?

Or it could be a old low that it wants to run below.

That future price could be a number of things, but for now, we're just going to aim for an old low.

Between the market price today and the future price that you anticipate or forecast lower in the future, there's going to be zero opportunity for it to be a straight line.

In other words, you're not seeing that diagonal line in the way the market trades.

It just doesn't do that. It is always some give and take that takes place.

So understanding where certain arrays occur in that process will help you, number one, stay with the trade idea, not be shaken out of it, and have the confidence to hold until the objective is met or your stop gets taken and it's simply moving to a next opportunity.

The opposite scene, when you're looking for a bullish scenario, everything's just reversed.

You expect market price to be in the future at a premium.

In other words, it's going to be higher than it is today.

Again, you have no idea how long time is going to be required to get to your future price or forecasted price, and you have to submit to that a measure of time that is unknown.

You can't know for certainty how many days or how many hours or how many months it will be before that price is actually arrived at or if at all.

But you also have to be studying price. And again, monitoring and studying the PD arrays that occur in price action that leads to supporting your expectation on institutional order flow that would drive price up into that premium level.

The understanding is that price will move from a discount to a premium because the discount can't stay discount very long.

Price is going to be established by whoever is selling it, who stands to make a profit off of it.

Well, the central bank is going to be in the business of adjusting price.

So if we know that they are in control of price ultimately by way of steering sentiment in economies through the delivery of an interest rate long term to stimulate or to suppress an economy for a country, we have to view the market in terms of technicals to align ourselves with these ideas. So if we see a level of support,

our expectation is, okay, where is the evidence that this thing will go to a premium market?

Where's the premium market? Where's the resistance at?

Where's the higher level that I would want to see it trade to?

Between the market price you're at right now and that future price, again, it never happens in a straight line.

There's time that you have no understanding of exactly how long it's going to be, but there's also an element of price that you have to study. In other words, just because you think it's going there doesn't mean it's going there.

It could go halfway there and fail and go lower.

Nonetheless, what we're going to do is I'm going to outline now the arrays and keep them in a specific order so that way you know wherever you're at in terms of market price, what you would expect to see or what you're looking for, okay?

In other words, what should I be looking for?

An order block or should I be looking for a gap? What should I look for right now?

That's what this teaching is going to do.