Most traders struggle to enter at the right time and most end up being stop out even before the price start to turn into their favor. Why risk something if you know where the imbalance occur on a price chart. Even better if you had the right tools.
Im going to show you an example in one of my trade today. Classic example of trade by the mass where they follow support and resistance thus showing an imbalance.
I have circled where area has been visited by price. Notice those are double tops in SR laymans language. Notice also I circled the area where pending orders are in large volume. and zero Bids , showing nobody is buying above 1.1776. That is one of the greatest key turning points you can see on a chart.
Sellers like 226 and buyers 0
So I put a 15 lot pending sell limit. just to add the number of sellers there. Prior to that, there were 13 buyers willing to buy at that price and definitely got filled by whomever had to sell there earlier.
To me this setup is a very low risk trade and a rewarding one.
Hence I waited. Till the order got filled.
Order filled. Great! Now I want to see those buyers money into my account. It got filled roughly 40 contracts against 100 + contract of selling. Guess what happen. Price falls. Sellers exceeding buyers.
As the price start to fall, it finalises that only 40 buyers willing to buy those sellers price at 1.1776. I pressume like 40 traders out there are novice. So after 40 and nobody buys yet seller still offering and no buyers. So price decide to go cheap again.
This is scalping so I might only take this for a 5 pip trade. Exit 5 pip and done for the day.
so we can conclude, that this is a zero sum game against novice, new or beginner trader out there. Unless you know what you are looking at and doing. Hope this is a good lesson for you out there!