NEW VIDEO: It Was Never Random: The Hidden Psychology of Market Cycles
It was never random. This is the hidden psychology of market cycles: the same three-part story, order, chaos, order, on one day, a run of days and six years, from the dollar in 2020 to oil below zero. The Plot · Act III: The Circle.
Hands off: the stop never moves. Each signal counts at the furthest target it reaches, and as a loss only if the stop comes before TP1. One still open after 10 trading days closes at the market.
We've all been that long, stop parked just under the round number because it felt safe.
WAM reported that spot gold touched $3,986.50 on Friday, its lowest in more than three months, then rose to $4,030.67. The chart: Friday, 15-minute candles.
How the trap was built:
• Gold had fallen all week from Monday's high of 4190.31.
• Friday's Asian range ran from 3986.53 to 4032.45. Longs' stops sat under its low.
• 10:30 New York: 11 pips under the Asian low, to 3975.33. Stops filled, breakdown sold.
• 10:45: the first 15-minute close back above the low, at 4000.64. By 12:45, 4006.32.
The crowd was already leaving. In the CFTC report for 20 October, large speculators cut their net long by 8,014 contracts, to 199,865.
The rule: a round number that breaks and closes straight back is a hunt, not a breakdown. Retail sees the break. The observer waits for the close back.
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NEW VIDEO: The Trend Is Not Your Friend: The Hidden Psychology of Trend Trading
The trend is your friend, until it needs your stop. This is the hidden psychology of the trading week: how three days of trend set up the reversal, why eight markets turned in the same session, and where the crowd's stops were waiting. The Plot · Act II: The Week.