A trader explains why they focus on key price levels rather than every short-term footprint. They describe interpreting aggressive buy orders that fail to move price as evidence of passive sellers (supply) causing resistance, and how fading volume or the absence of aggressive buyers can precede price moves down. The clip emphasizes reading order flow and volume at key levels to anticipate direction.
Now as a trader, I'm not looking at every single footprint minute by minute or five minute by five minute and trying to analyze it. I'm looking at key levels. So for example, I get into a key level and we hit that key level. But we keep seeing aggressive buy orders, but market is not moving. We see that a lot of participants are aggressively buying here, but the market is not moving. That means that there are passive sellers that keep selling to them. There's a lot of supply here, hence why we're unable to move. And when that supply is, you know, stays active and the demand dies down, we start seeing a move down. Another scenario could be as we start moving up, the aggressive buyers are no longer there. The volume dries down, which, you know, I'm looking down here, the volume dries down. And as volume dries down, I'm seeing somewhat of a move down.
