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Identify a potential trap |
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Feel the pain |
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Spring the trap |
Lance Beggs
![]() |
Identify a potential trap |
![]() |
Feel the pain |
![]() |
Spring the trap |
Lance Beggs
The following is a great question I received in a recent email: QUESTION: Hi Lance, I have a hypothetical question: Assume you are trading 6E (EUR/USD) on a 3/5 min timeframe. Current price is halfway between support and resistance on a 30min timeframe. The trend is up and your premise is for price action to…
Today we had three different breakout pullbacks with three different outcomes. The following charts show the trading timeframe first (one chart), followed by the lower timeframe detail (three charts, one per trade). A common question (although often appearing in different forms) is "but how do I know whether they will work or not?" Answer… I…
My preference for triggering entry is via a lower timeframe pattern breakout, such as shown in many examples throughout the YTC blog archives. For examples you might want to refer to the YTC Newsletter signup bonus ebook, “The LOST Files – 150 Lost YTC Blog Posts” for the following posts: Chart Patterns at the Micro…
Avoid What is Strong – Strike at What is Weak! So in war, the way is to avoid what is strong and to strike at what is weak. … Sun Tzu, The Art of War Trading is not about prediction. Instead we let the marketplace reveal it's plan and attack only when we…
I want to expand upon an idea we discussed in a prior article – https://yourtradingcoach.com/trading-process-and-strategy/what-if-you-narrowed-your-focus/ That is the idea that while learning and developing as a trader, you may find greater value in narrowing your focus and specialising in just one small segment of the daily trading session. The suggestion was that rather than fight…
Let's continue with an old article series – the metagame – trading AGAINST other traders who find themselves on the wrong side of the market. Because… If I can't feel someone on the other side of the market getting it really wrong, there is no trade. You can see the prior articles here if…
Simply Awesome…We could be profitable only when we feel other traders fear,greed,pain…Thanks
Thanks Anand, I’m glad you enjoyed this article. 🙂
Lance, this post means a lot but I read it too late, this was 100% me trading EUR/USD on Friday and how I wish I had read your post in the morning before my trades after the NFP.
If I had read this before 9am like I normally do, it would have been a totally different story.
I had quite a few chances to get out of a few loosing trades withought incurring any losses and sometimes even with small profits when the looses reversed back in my favour but I refused. 100% stubborn.
Thanks again. Learning as usual
It’s a never-ending learning process! 🙂
Great article and examples, thank you for illustrating metagame!
FWIW, understanding and applying this concept to trading was the most important step I ever made. Increased–but consistent–profits, while tremendously decreasing stress.
Thanks Chris, I appreciate the great feedback.
I’d say that understanding the metagame concept was also perhaps the most important paradigm shift in my own growth and development. I’m glad to see that you have found the same.
This is Great, loved it.
i have a small question; when entering the position against the trapped traders, shall we look for signals like pin bar, engulfing, etc? or are we supposed to just enter on the break of the critical level?
I use a concept called LWP which is described in the YTC Price Action Trader. It’s not described on the website, sorry.
The aim is to get into the market no later than the LWP point, through whatever means you determine most relevant to the current context of the market. This might at times be a pattern break, as you’ve suggested. But other times, in a different context, entry might better be achieved through a limit order at a more wholesale price area. It all comes down to context and real-time reading of the market.
http://www.ytcpriceactiontrader.com/
Ok got it, thanks Lance 🙂