Hello traders,
Let me tell you something that changed the way I trade forever: the market doesn’t care about you, but it does rely on traders like you making mistakes.
That’s not a conspiracy. It’s just how price discovery works.
The market isn’t watching your stop-loss. It’s not waiting to snipe your breakout. But it is structured in a way that moves when enough traders are wrong at the same time. When people chase highs, panic at lows, or get trapped just before the real move – that’s where the liquidity comes from. And the market needs that liquidity to move.
I learned this through Auction Market Theory, and if you’re still trading based on patterns alone or relying on lagging indicators, you’re missing the deeper layer – the layer that actually explains why price moves.
Markets rotate between two states: balance and imbalance. When we’re in balance, price rotates quietly, candles overlap, and there’s a general agreement between buyers and sellers. But balance never lasts forever. Someone always disagrees. That’s when price explodes out of the range. That’s when the real move begins.
If you’re not already using volume profile analysis, you’re flying blind. The volume profile shows you where business was done – High Volume Nodes show agreement. Low Volume Nodes show rejection. And those sharp cliffs? They often act like magnets… or brick walls. Context like that completely changes how you see the chart.
This is the difference between chasing price and anticipating where pressure is building.
Most traders get trapped reacting to the last candle. Auction-aware traders? We’re already watching the value shift. We’re looking for the failed auction, the reclaim of a key level, the imbalance that triggers pain on the other side of the tape.
This isn’t about prediction. It’s about positioning with structure. It’s about knowing where the crowd is leaning – and being ready to take the other side when they’re wrong.
So no, the market isn’t “after you.” But it is fueled by your mistakes, your stops, and your emotional decisions.
Yesterday, I broke down my bread-and-butter setup – a must-read if you’re positioning ahead of the Fed. Make sure you check it out!
If you’re ready to stop playing the victim of price and start reading the auction like a pro – this is your moment to shift.
Because the market doesn’t need you to be perfect. It just needs you to finally understand how the game really works.
See you in the next one.
Imre Gams
Editor, The Trading Room
