Hi,
Ive already read two of your books and so far i like them.
Ive been part of a good trading community with a good mentor as well with a proven trading record. The mentor trades just for himself with over 800 lots so he really knows what he’s talking about.
The course teaches everything you tell in your books but the only thing i have trouble accepting from your book is that most of the zones my mentor, me, and all other students have is they do get broken by a fakeout where then we take the trades. Our drawn zones are the exact same ones as you drew in your books so for me, like i said, it doesnt happen often that price doesnt breach the zones with little fakeouts.
And even when the fakeouts happen, the trades still continue down, just as explained in your book.
Can you elaborate on that please?
Kind regards,
My Answer:
I’m glad you enjoyed the books!
Wow, 800 lots?
That’s impressive!
It’s great to hear our trading styles are similar; it suggests we’re both recognizing the same market patterns and opportunities.
Regarding zones getting faked out, it’s a tricky issue without a single, definitive answer. However, it could be banks and smart money strategically triggering stop losses. They use these fakeouts to either increase their positions or secure profits before ultimately reversing the market’s direction.
Think of it this way:
Banks can’t execute all their trades or take profits all at once.
So, when they see a cluster of stop-loss orders piled up near a key level, they might nudge the price past those levels to trigger the orders and create additional liquidity for their trades.
Of course, it’s not always this simple.
The frequency of fakeouts can vary depending on the specific zone and the overall market context. RBR/DBD zones, for instance, seem to be more prone to fakeouts due to the way stops tend to accumulate near the highs or lows that formed the zone.
While I don’t have a foolproof explanation for every fakeout, understanding the banks behavior can definitely help raise your awareness.
I hope this insight proves useful.
Feel free to reach out if you have any more questions!
Best,
PAN.