Kardec Trader explains how institutional traders find trade setups: identify consolidation levels after a price move, then wait for price to return to that level and watch for large buyers or sellers defending it. This gives you an asymmetric edge instead of chasing bottoms.
The first step, we want to identify a level of support, level of resistance, or a level of demand or a level of supply. Let's say we had the market beginning to sell off, and then all of a sudden the market begins to consolidate for a little time following this move of consolidation right here, the market then impulsively moves up. This level of consolidation now becomes, for me, a level of interest to watch at some point in the future for the market to possibly come back down and revisit this level. Step number two is then waiting for the market to revisit this level, and then we want to.
See the rally up.
The concept of this strategy is it puts us in the position of large buyers or large sellers. Defending price is what I call it. If the market's down, trending. I'm not the biggest fan of trying to catch the market, let's just say long, at a demand zone. So this enables.
The market to rally.
We will then miss.
This rally.
But part of.
This strategy is that this rally.
Right here in this example, buyers, it could be sellers. If we're talking about supply factored into the market. And the concept of.
This strategy is.
Then a pullback or retest of the buyers for large buyers to defend price.
