Kardec Trader breaks down why most traders fail: they don't build a narrative around price action. He shows how to identify trend lines, liquidity breaks, and market structure shifts on the S&P 500, then plan entries on retests with stops anchored to recent lows so your wins are bigger than your losses.
You will have a decent win rate. You have the S&P 500 here and you have a trend line. Would you be wrong in taking along here? What you're trying to do is achieve a disproportionate win versus the loss that you take with your stop limit. But you still want to build a narrative. This right here, when we talked about liquidity Catalyst, that break of that trend line, if this is the first day that you see this chart, are you going to feel like you might have to react soon? Yes, this is a liquidity event. We broke major support. So let's say that you want to take a retest of that trend line. Where are you targeting? Don't we have this low right here? You have have that low right there. You have a low right here. Now you have a narrative, you have a liquidity event, you have a trend line, and you are going to play the retest of that trend line. But in this series of higher highs and higher lows, you have a market structure shift right there. So what if the way that you traded took into account this drop below here and you said to yourself, I'm going to take a trade at a retest of that level, you would still be right.
