Viewing the market not just as price movement and patterns, but also as PEOPLE whose trade decisions create the price movement and patterns.
Metagame Trap Entry:
Recognising places on the chart where other traders are trapped in losing positions. Feeling their frustration, pain and disappointment. And using that to time our entry, at or before the place where they give up all hope.
Because the best opportunity comes when I can feel someone on the other side of the market getting it REALLY wrong.
It’s one of the core principles underlying the YTC Price Action Trader.
Let’s go to the trading timeframe now.
Seriously… get a timer or stopwatch and sit for 30 seconds, imagining the anticipation of a winning trade weaken as price stalls.
This is what I like to sense in the market. A loss of hope for anyone who might be on the wrong side of my trade. And recognition of the point at which they’ll give up and scramble for the exits.
If I don’t feel this, then there should be NO TRADE.
(Higher timeframe traders – the same concept applies to you. Whatever period of time you expect is “normal” for stress to start to increase and doubt to start replacing confidence… that is what you’re trying to find.)