Kardec Trader explains a two-state market model: balance or imbalance. Enter range trades only in balance, directional trades only in imbalance. He describes taking multiple small stops before missing a major move, then implementing a 'lock' rule to prevent impulsive entries.
The first step is understanding market state. We can only have two market state. We can have a balance market price action going here and we can have an imbalanced market. Okay? With this model, we want to transact here. We are not interested in this market condition. So also for the gamblers, you have one rule that keeps you out of the market. And this is really important because when I start scalping with price action, every movement was okay for me, like every small impulse. And then you say, okay, I took three stop for the day, I'm out. And then the big moves arrives. So this is the lock where you cannot enter if you.
