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So when I first started on the floor it was hard for me to have an opinion, I didn't know which way the market was going to go next. Over time, as I started to understand the business of the floor, I started to get a feel for what the market was going to do. Similarly, if a novice watches the market day in day out on the screen, he would inevitably start to make sense of the prices. As they start to make sense of it all they naturally form an opinion of where the market is going next and it is the ability to form such an opinion that all traders need to cultivate. 31 Market Forces The market is a constant struggle between buyers and sellers. Like a tug of war that has no end, the opposing teams are forever trying to push the price in their favor. Buyers always want the price to go higher and sellers always want the price to go lower. I find it very helpful to watch the market with one question in mind: who is in control, the buyers or the sellers? It is by observing the market from this perspective and by seeing control shift from one side to the other it is possible to be alert to new trading opportunities. The information we receive about the market is always giving clues as to who is in control. By becoming adept at reading this information we become adept at anticipating price movements. 32 Chapter 7: Bar Charts |
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