Short YouTube excerpt criticizing a common trader habit: traders set trades solely on "breaking a level" (e.g., "go long if the stock breaks this level"). The speaker expresses disapproval and emphasizes that relying only on level breaks is a mistake.
I see a lot of traders do this. I'm not really a big fan of it. They'll say, I'm going to go long if the stock or instrument breaks this level.
I'm going to go short if the.
Stock or instrument breaks this level. I don't like.
To look at the market that way. I like to look at the market from a perspective where I want to pay attention to how price responds here. How does price respond here? Do we get passive buyers stepping in? Do we get aggressive sellers step in? Like what happens around these levels? What happens with the buyers and sellers activity? Who is more in control? Who is more aggressive? Who is consistently hitting the bid? Who is consistently hitting the aspect? I like to pay attention to that to get the storyline. Also, it matters how a particular trade has gotten to a level. If a trade just randomly goes to a level. I'm not comfortable in taking a long position here because we need to see some sort of consolidation. We need to see some pullback. But when we do get the pullback, we do get the consolidation after a big move. Now I get a little bit more comfortable maybe going long here, right?
