Kardec Trader explains how to spot when buyers or sellers are aggressively pushing the market out of balance. When one side overpays or dumps shares to exit fast, that imbalance signals where price is headed next.
So the market is a constant war between buyers and sellers. Buyers and sellers are trying to find a fair price in the market. That's where you see prices go up or prices go down. Sometimes market participants believe that the price is undervalued so the buyers will be more aggressive than sellers and there's times where sellers will be more aggressive than buyers. Now that doesn't mean that there's more buyers or sellers in the market because that can exist for every buyer. There's a seller for every seller. There's a buyer for every transaction is a buy and a sell. But the difference is sometimes you might see the buyers be more aggressive and eager to pay a higher premium on a price than sellers would be and vice versa. Sometimes sellers would be more eager and more aggressive on offloading their position than buyers would be. Right? So that's where the imbalance is created and our job as traders is to identify that imbalance and to capitalize on it.
