#ForexChief #PriceAction #trading #forexschool #forexeducation #StopLoss #MarketMemory ⠀
💱 What is "market memory"⠀
📊 This beautiful term is called the property of price to repeat or imitate previously formed patterns. Technical analysis fans use this fact in the "history repeats itself" thesis.
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In real life, these prejudices are absolutely human. The price is "remembered" not by the market, but by institutional traders who, seeing an opportunity for profit, turn the price in the right direction.
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There are not many scenarios of the buyer/seller struggle - these are graphical and three-dimensional patterns familiar to everyone, such as "Head-Shoulders", Triangles, Spikes, Price Action patterns. “Market memory” means the willingness of traders to accumulate Limit-orders in the zone of strong levels - round, “mirror”, extreme - where the “price history” of trend reversals or breakdowns has already been accumulated. Then we’ll just wait for the price, hoping that it will follow the usual pattern.
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Large players deliberately create standard situations in order to push the “market plankton” from level to level, but at the same time they are ahead of all - a few bars are usually enough to “collect” our StopLoss.
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Small or large patterns are formed depending on how quickly capital is added to the market and how intensively traders who take profit exit trades. This is a short or longer "market memory".
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Profits to y'all!