The market likes to visit wholesale price levels.
The vehicle the market uses to get to those levels is called order-flow.
Order-flow consists of the entirety of the buy and sell order volume in the market. Easy to grasp.
What is not so easy to grasp is the fact that institution order-flow takes the other side of retail order-flow.
Wherever retail buys at retail prices (expensive), the institutions are willing sellers.
Wherever retail sells at wholesale (cheap) prices, the institutions are willing buyers.
You may ask why in the world would anybody buy at expensive prices and sell at cheap prices?
Because fear and greed. We will leave it at that.
Regardless, we can clearly see that one side is profitable, and the other side is not.
Pick a side, and position yourself accordingly.
-TradingIsMental
The vehicle the market uses to get to those levels is called order-flow.
Order-flow consists of the entirety of the buy and sell order volume in the market. Easy to grasp.
What is not so easy to grasp is the fact that institution order-flow takes the other side of retail order-flow.
Wherever retail buys at retail prices (expensive), the institutions are willing sellers.
Wherever retail sells at wholesale (cheap) prices, the institutions are willing buyers.
You may ask why in the world would anybody buy at expensive prices and sell at cheap prices?
Because fear and greed. We will leave it at that.
Regardless, we can clearly see that one side is profitable, and the other side is not.
Pick a side, and position yourself accordingly.
-TradingIsMental