How I Use Trendlines #shorts #trading

29 Apr 2023 · 1 min

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0:55

In this short video, the presenter explains that market makers likely do not rely on trendlines, contrary to common retail trader belief. He argues that most retail traders interpret trendlines as definitive support or resistance and place trades or stop‑loss orders based on them, creating predictable liquidity. Market makers can exploit this by triggering stop‑loss clusters just beyond the trendline, causing short price wicks that capture retail positions. The speaker emphasizes the need to look one level deeper than the obvious trendline to understand the true market maker perspective, and he positions his channel as an educational resource for this deeper analysis.

Chapters

Now you might be wondering, do market makers use trendlines? And the answer is probably not. But I can tell you why I use trendlines and it is not the way that you're expecting it to. Because whenever you see trendlines, right, you can immediately expect a bunch of retail traders to just look at the trendline and like, oh wow, so price got rejected here because of the trendline. So it's trendline resistance. Price is supposed to find support here. So, you know, the support is going to hold. So I'm going to go long here and it's going to go to the moon, baby. That is how most retail traders would look at it. But from the makers' perspective, this is all just liquidity, right? Just think about how many retail traders are going to place their stop loss right beneath this level, and it's so easy, right? You can just literally wick the price down just a little bit, reverse it, and basically you stop everybody out. So ultimately, you need to read one step, like one level deeper, to understand what the market makers are seeing, and that is what I'm hopefully trying to educate you on from this YouTube channel.