Imagine a surgeon who doesn’t understand anatomy. Even the most routine procedure could become a high-stakes gamble with life and death.
Or, think of a pilot who doesn't grasp aerodynamics. They can taxi down the runway, but the moment they take off, they’re in uncharted territory, risking the lives of everyone on board.
Now, think about a trader who lacks a basic understanding of market dynamics.
The sad truth? You don't have to stretch your imagination for that last example.
It would be ridiculous to even consider other professionals operating without foundational knowledge. Yet, an overwhelming majority of traders have no idea how markets really work. In fact, I'd estimate that at least 99% are in the dark!
If you fall into that category, it's not your fault. Most online lessons are taught by 'traders' who also don't understand market mechanics. Unfortunately, this explains why their trading approaches are not fit for purpose.
But don't worry, this ultimate guide will solve your problem.
I'll teach you how the markets really work in an easy-to-understand way. This will help you improve your technical analysis and give you a better understanding of which trading approaches to avoid (spoiler alert: it's most of them).
If you ask traders to explain how and why prices move in the markets, the more knowledgeable ones will probably tell you it’s based on supply and demand.
That’s a good start, but it’s only a small part of the truth. In fact, it raises a number of other questions, such as:
- What is the supply and what is the demand?
- How do we know how much supply or demand there is?
- Who decides when it’s time to change the price based on that?
- Why do markets become choppy and volatile?
- How does this influence my trading approach?
These are questions you’ll know the answer to by the end of this guide, and many more. You’ll discover that there’s a lot more to it than just supply and demand, and most traders are missing a lot of vital knowledge. These insights are the basis of what many people perceive to be ‘professional’ trading approaches, such as order flow and AMT.
The concepts you'll be learning come from the field of Market Microstructure. So let’s begin by understanding what that is.
What is Market Microstructure?
Microstructure is the study of the inner workings of financial markets and how they operate. In other words, it looks at how exchange occurs and how these mechanisms influence price movements.
As the name might suggest, microstructure focuses on the micro-level of individual price changes and transactions. If we compare it to physics, we're essentially examining what would be considered microscopic.
Microstructure has become one of the fastest-growing fields in financial research, partly due to the rise of things like algorithmic and electronic trading. It mainly focuses on the structure of exchanges, the process of price discovery in the markets, intra-day trading behaviour, and how bid-ask spreads and other transaction costs are determined.
When we talk about an exchange, this is essentially another term for a market. There are many different exchanges for various assets. For example, you're probably familiar with a stock exchange, otherwise known as a stock market. The New York Stock Exchange (NYSE) and the Nasdaq are both examples of this.
Exchanges can function in many different ways, so each market may have a slightly unique approach. But, in general, most of the markets we focus on operate through something known as a continuous double auction process.
The term 'auction' means that market participants can place orders or quotes specifying the quantity and price at which they want to trade. The term 'continuous' signifies that they can change, cancel, or place new orders at any time. And the term 'double' indicates that the market operates similarly for both buyers and sellers.
So, with this in mind, let's move on to understand how this auction process takes place. This is crucial for understanding what causes price movements.
Types of Orders in the Markets
If you want to know how markets work and what causes price movements, you need to understand the relationship and differences between two important types of orders.
Open your trading platform and explore the window that allows you to place an order. What do you see there?
You’ll usually find several types of orders. If you’re using a more advanced platform, this list of order types can be quite extensive.
Some orders will have funny names like ‘fill or kill’, or ‘execute and eliminate’. Like something out of a Terminator movie.
But ultimately, we can broadly group these orders into two categories:
- Orders that execute an immediate transaction
- Orders that will only execute at a specific price or under specific conditions
These two broad types of orders are known as Market Orders or Limit Orders (also known as resting orders).
- Market Order: transacts immediately at the best price
- Limit Order: transacts only at a specific price
If you click the quick-trade buttons in the corner of your trading platform and a trade is opened for you, that’s a market order.
On the other hand, if you choose a particular price and place a pending order there, that’s a limit order.
Most traders understand this basic difference between the two order types. However, the relationship between them, and their role in the functioning of the market, is a bit more complex. This is the thing most traders don’t know. So let’s move on to discuss that.
How Trades are Executed
Most traders know that for a trade to be executed, there needs to be someone on either side of the trade. There will be someone buying and someone selling. But how does this process actually work?
Essentially, for a trade to take place, a market order will transact against a limit order. Let’s discuss this process in more detail.
Limit orders will be placed in the orderbook for the market; I’ll explain later how you can see this information. You may recall that limit orders are also known as ‘resting orders’, because they’re resting in the orderbook.
Limit orders provide liquidity in the market. Liquidity basically refers to how easily an asset can be bought or sold quickly at stable prices (we’ll discuss this more later).
Market participants who place limit orders are known as liquidity providers.
Using limit orders is a more passive way of trading, as you’re placing your order and waiting to see if it will get filled at your designated price. If it does, you transact at the price you wanted. If it doesn’t, your trade doesn’t get executed.
On the other hand, participants using market orders are known as liquidity takers. This is because they’re transacting against limit orders and, therefore, taking liquidity out of the market.
A market order is a much more active and aggressive way of trading, as you’re trying to transact immediately at whatever price you can get.
Since a market order will transact against a limit order, it means the price the trader will pay is dictated by the liquidity available in the market. If there isn’t enough liquidity, they might end up with a worse price than they wanted. This is something we’ll discuss later, and is the reason for slippage on trades.
Before we move on to discuss how this influences price movements and different types of market activity, let me explain how you can observe this information in the market.
How to See This Information in the Market
The process of limit orders being placed and market orders transacting against them is commonly referred to as order flow. Although there are many ways to display order flow data, there are two main tools that we choose to focus on: the depth of market and the footprint chart.
Depth of Market (DoM)
The depth of market (also known as the DoM) shows us the liquidity in the market; the orderbook. We can see the limit orders that are placed at different price levels to buy or sell. You can see an example below.
On the right-hand side is the ask column. These are the orders you’d be transacting with if you were buying with a market order.
On the left-hand side is the bid column. These are the orders you’d be transacting with if you were selling with a market order.
In other words, the limit orders are saying “Here’s what I’ll ask for my 50 contracts” if they’re willing to sell, or “Here’s what I’ll bid for 50 contracts” if they’re willing to buy.
There’s other information we can display on the DoM, such as pulling and stacking (how many orders are being added or taken away from the orderbook). But you don’t need to know about that for now.
- Column 1: The price of the asset.
- Column 2: The 'bid'. This shows resting orders (limit orders) to buy at each price (market orders transact with these if they want to sell to them).
- Column 3: Bid pulled/stacked orders. This shows how liquidity at each price has been changing.
- Column 4: The 'ask'. This shows resting orders (limit orders) to sell at each price (market orders transact with these if they want to buy from them).
- Column 5: Ask pulled/stacked orders. This shows how liquidity at each price has been changing.
We can think of the DoM as being like the advertising board in the market. Participants are advertising how much they’re willing to buy or sell at different price levels and waiting for someone to take the other side of the trade.
Footprint Chart
Then we have the footprint, which is showing us the actual transactions that took place. In other words, these are the actual trades that happened when a market order transacted with a limit order.
On the left-hand side are the transactions where a market order sold against a limit order. On the right-hand side are the transactions where a market order bought against a limit order. We can see the quantities of each transaction at the different price levels.
Important note: in decentralised markets, such as forex, you aren’t usually able to see the orderbook for the market. The footprint chart will also not show all transactions that happened, but only the ones that happened in a particular exchange. That means, the information won’t be complete, but is usually still a good gauge of what’s generally happening in the wider market.
Using the DoM and footprint chart can provide amazing insights that can help with your trading. In the Duomo Trader Development Program, we teach you techniques to read order flow information and use it to find opportunities.
However, it isn’t essential to use this information for your trading. The important thing for now is that you understand the processes that are taking place in the markets and how this influences price behaviour. This will help you to figure out things like when it’s a good or bad time to trade, whether the market activity matches what you expect to see, and whether an overall trading approach is valuable or useless.
How Prices Move
Now you understand how limit orders and market orders work, let’s think about what this means for the general movements of the price.
As I mentioned earlier, when people state that the markets move based on the relationship between supply and demand, they’re only partly correct. If you’re buying with a market order, the limit orders (liquidity) are the supply and you’re the demand. If there’s limited or no supply at a price, the price will move up to where there is more supply.
Let’s go through an analogy to help you understand this process.
Imagine you walk into a marketplace where everyone sells apples.
You run an apple pie shop, so you need a lot of apples. On this particular day, you need to buy 200 of them from the market.
There are four market stalls and each of them is advertising the price of their apples and how many they have in stock.
- Stall #1 has 80 apples available at 18p each.
- Stall #2 has 30 apples available at 16p each.
- Stall #3 has 200 apples available at 22p each.
- Stall #4 has 20 apples available at 20p each.
Assuming you can’t negotiate the price or get a bulk discount. What’s your plan to buy your 200 apples?
It would probably be this:
- First you’d take all the apples at 16p each from Stall #2.
- Next, you’d take all the apples at 18p each from Stall #1.
- Then, you’d take all the apples at 20p each from Stall #4.
- Finally, you’d buy the remaining 70 apples you need at 20p each from Stall #3.
Overall you paid an average of just over 19p per apple.
If Stall #2 had 200 apples available, you would have taken them all at 16p each. However, since the amount they were offering didn’t meet your needs, you went to the higher prices until you fulfilled your total order.
Now, what happens if someone enters that market after you and needs to buy an apple? What price are they going to pay?
The only ones available are now at 22p. Stall #3 has 130 apples left at that price. Therefore, 22p is the current price for an apple. Earlier in the day it was 16p, but the price in the market has changed.
Let’s relate this back to the financial markets.
The sellers offering apples at specific prices are like the limit orders in the market. They’re waiting for a buyer to come along and be willing to pay that price.
If no buyer comes, they’ll either have to lower their price or hold onto their items.
On the other hand, when you came into the market needing 200 apples immediately, you were like a market order. You were willing to transact at the best prices you could get.
Market orders to buy will transact with the lowest priced ‘ask’ in the orderbook (this is also known as the offer, and if you agree to buy at that price it’s known as ‘lifting the offer’).
Market orders to sell will transact with the highest priced ‘bid’ in the orderbook (which is known as 'hitting the bid').
As the liquidity at the closest price is taken by market orders, the remaining market orders will have to find liquidity at the next price. This is what causes the price movements in the markets.
Therefore, we can assume the prices in the markets are going to move based on the more aggressive traders. And in this case, ‘aggressive’ means using a market order rather than the more passive limit order.
Let’s take a look at this diagram of a DoM:
In this case, if the price is going to move up, someone is going to have to buy the 32 contracts at $101, then the 23 contracts at $102 and so on.
Bid-Ask Spread
Now that you understand how transactions happen in the markets, you can also better understand the bid-ask spread. This is commonly defined as being the difference between the prices at which you can buy or sell. But now you know there’s a bit more to it than that.
Since market orders will transact against the best available bid or ask, this is what defines the spread. We’re looking at the nearest limit orders on either side of the orderbook.
This also explains why a spread can be wider or tighter. If the market is more liquid, the spread is likely to be tighter and if the market is less liquid the spread is most often going to be wider.
On the topic of spreads, you may have heard of the term ‘market maker’. In the retail trading space (particularly among trading educators), market makers get a bad rap. They’re often stated as being an enemy of retail traders.
This conspiracy is not true. It’s just a myth perpetuated by people who don’t understand how the markets work.
A market maker’s role is pretty plain from the name itself. They’re making a market. In reality, market makers will operate with a combination of market and limit orders depending on the situation, but we can understand their role best by just focusing on their use of limit orders.
If a market maker has limit orders on both sides of the spread, they’re looking to make money by buying from one market participant at the bid and selling to another market participant at the ask. Therefore, they’re making their money from the spread, while providing the liquidity for market participants to be able to transact immediately with a market order.
Market makers want to stay neutral in the market, meaning they don’t want exposure to any directional moves in the price. They want to make their money from the spread. So all the conspiracy theories about market makers driving the price to wipe out retail traders are not true.
Market makers support the markets by offering liquidity and immediacy. Markets need this to run smoothly and maintain stability. In general, most markets operate with a maker-taker pricing model. If you execute with a market order, you’re a liquidity taker, since you’re taking liquidity out of the market. If you place limit orders, you’re a liquidity maker, since you’re providing liquidity in the market. So in some markets using a maker-taker pricing model, the makers will receive a rebate which incentivises them to provide liquidity.
Understanding this is important for recognising what’s happening in the markets at particular moments. Let’s move on to elaborate on this and discuss how the things you’ve learned so far affect the type of activity we see in the markets.
Types of Market Activity
Based on what we’ve discussed so far, we can define two terms that affect how we assess the activity in the markets.
- The liquidity in a market refers to the number of limit orders.
- The volume in a market refers to the number of market orders (i.e. completed transactions)
With this in mind, we can imagine four quadrants that market activity can fall into:
- Low volume, high liquidity
- High volume, high liquidity
- Low volume, low liquidity
- High volume, low liquidity
In reality, we can’t classify volume or liquidity as being simply high or low. Instead, they’ll each be somewhere along a spectrum. However, for the sake of simplicity, it’s easier to imagine the levels in terms of these quadrants.
So let’s think about the implications of each of these categories.
If the market has a high level of liquidity (many limit orders) at each price level, what sort of activity would you anticipate?
It’s likely to be relatively tame without many wild swings in the price. Market orders don’t need to move to much higher or lower prices to find liquidity to transact with.
However, in some cases there may be extremely high volume. In that case, despite there being a high level of liquidity, price moves may still be quite active. Think about situations where this may occur. What situations in the market could lead to high enough volume to move prices even with high liquidity?
Perhaps during unexpected significant events that disrupt the market in some way. However, this sort of situation is rare, for reasons I’ll explain in a moment.
Alternatively, it may be that a big market participant is building or offloading a huge position. Although this is usually executed in less disruptive ways which we’ll come onto later.
Now let’s think about the opposite situation. What would happen if the market doesn’t have much liquidity, meaning there’s a scarcity of limit orders?
If volume is also low, this may not cause a problem. Price movements will still be relatively tame, as the low liquidity is enough for the low volume. This can happen during quiet hours in the trading day, or during low activity periods in the markets like at the end of the year.
However, if the volume is high, it means the market orders have to run through price levels to find the liquidity they need. This leads to more volatility in the markets with bigger price swings occurring.
During these times, you’re more likely to get slippage on the trades you execute. Slippage basically means the price your trade is executed at is different to what you expected. Just like the example with the apples in the market, if there’s not enough liquidity to fill your order at a particular price, your market order is going to get filled at a worse price. You have some slippage on the trade.
What do you think might cause this sort of activity in the markets?
If your answer included things like major economic data releases, news releases, or other disruptive events, you’re correct.
During those moments, we would expect higher volume as more market participants urgently need to execute trades either to build a position or exit an existing one. But I mentioned earlier that it’s not as common for these events to be paired with high liquidity. Instead, we’ll typically see lower liquidity, for a very important reason.
Let’s think back to the market makers we discussed earlier.
Remember, I told you they don’t typically want exposure to directional moves. They want to make their money from the spread and stay relatively neutral in the markets.
Therefore, if there’s something disruptive hitting the markets, they’ll be faced with uncertainty. Since they can anticipate bigger price movements will follow, they’ll pull their liquidity from the market (remove their resting orders) to avoid that exposure. This results in lower levels of liquidity in the market, which means the higher volume leads to more volatile and sudden moves.
This is what we see happening before, during, and after things like scheduled economic events, such as the release of major economic data or central bank announcements. Market makers may pull liquidity, as will other liquidity makers. If volume hasn’t also dropped, we can expect volatility. Likewise, the sudden price moves are likely to attract more traders to the market, along with others who are repositioning based on the data. As a result, rather than the price moving smoothly to the new fair value, we’ll get volatile, unpredictable herd activity.
Although different markets can be seen as high liquidity or low liquidity in general, they don’t just stay statically at a high or low level. Instead, the level of liquidity and volume will change throughout a day or over time, for many different reasons.
In some cases, it might be that there’s liquidity near the current price but it’s for a relatively small number of orders. That means the market isn’t able to absorb a large market order and therefore it isn’t actually that liquid. This is what we refer to as the market depth - how able the market is to absorb a large order. So even if the spreads are tight, it might still be illiquid.
There’s much more complexity and nuance to all of this, but by thinking of it in simple terms you can hopefully see how the microstructure relates to the price moves we see at different times.
What This Means for Our Trading
Now you understand the mechanics behind different types of activity in the markets, and this puts you in a better position than the vast majority of other traders.
Things happen due to changes in activity at different points in time; whether that’s a shift in volume, liquidity, or both. For example, if you’re looking at a reversal or a breakout, both will occur due to a shift in activity. With the knowledge you’ve just gained, you’ll be able to pinpoint what that shift was when it happens.
This will allow you to understand what happened with previous price movements, and identify the current conditions in the markets (i.e. the volume and liquidity levels).
But this information alone will not mean you can anticipate what will happen next, and that’s what’s important for successful trading. To achieve that, you need a trading method that will allow you to interpret this information to identify when that change in activity will take place.
Of course, that’s if you’re looking for precise entry and exit points. Some methods, such as those that focus on the long-term or rely on things like fundamental analysis, don’t need to determine exactly when or why a shift will happen.
However, most trading methods people learn these days are attempting to do exactly that; identify the ideal time to enter or exit trades. Although your new knowledge won’t provide that for you, it will still give you the ability to recognise when a trading method isn’t as meaningful as it claims to be.
Most trading methods focus on arbitrary breakout or turning points based on patterns or indicators. These have no relation to the activity levels we see happening in the markets and any success that comes from them is purely down to luck. In fact, you could use tools like the DoM and footprint chart during backtesting to see whether the method does genuinely anticipate shifts in activity or not.
You should now be in a position to not just take trading approaches on face value, but to question why their methods would work. What is it about the things they’re identifying that would cause a shift in activity? Is it something arbitrary, or is it truly meaningful to the dynamics of the market?
Other Considerations for Your Trading
To help you with your trading, I wanted to briefly explain a number of other implications of the things you’ve been learning in this guide.
Big Market Participants
The big players in the markets face issues when they need to execute their large orders. This might be to get in or out of a position, or simply to make a transaction on behalf of a client (don’t forget, the markets have functions besides just speculation).
Let’s go through an example.
Let’s say an institution wants to acquire 0.7% of Tesla stock. It doesn’t sound like a big amount, relatively speaking, but they’re going to face some problems trying to execute that position.
Imagine they do it immediately as a market order. What do you think will happen?
They’ll run through all the liquidity in the market as the price soars higher and higher, leaving them with an extremely unfavourable average price. Not a good option.
Alternatively, what if they do it all by placing a limit order at a more favourable price that they’d be happy with?
Well, the market can now see that huge order in the book. This presents two possible problems:
Firstly, the order is so big that it’s unlikely to get filled if the market does reach it.
Secondly, even if it was possible for it to get filled, it’s still unlikely that it will. The market knows there’s enough liquidity at that price level that the market isn’t going to move beyond it. Therefore, it’s a pretty safe bet. That’s an extremely strong support level.
As the price heads towards the limit order, other market participants will front-run it and buy ahead of the price. This will cause the price to rise before it reaches the limit order, and the huge position won’t get filled.
Of course, it’s not realistic to imagine that such a large player would approach things in such a basic way. For these reasons (among others), if there’s a big position that needs to be executed it’ll be approached in a more strategic way.
One way to do this is to split the position into a group of much smaller orders and execute them individually in areas of high liquidity. They’ll do this, and more complex techniques, to disguise their order, allowing them to get filled without alerting the rest of the market.
However, in many cases, this isn’t going to happen over a short period of time. Even highly liquid markets don’t necessarily have huge liquidity available at every moment of the day. They just have some liquidity available constantly.
In the case of Tesla, it might be seen as liquid, but it’s not as though 100% of the shares are available as liquidity all the time. Even if shares are being transacted every minute of the day, it’s still only a small percentage of the total holdings in the company.
Typically, for large cap stocks that are traded frequently, the total daily volume will be around 0.1 - 1% of the total market capitalisation. If you were looking to buy 0.7% of the company, you’d be taking up the entire day’s liquidity. That’s not going to be possible or practical.
Instead, an institution splitting their order might have to spread it out across a longer period; days, weeks, perhaps even months in illiquid markets. One piece of research estimated that to buy 1% of a large cap company it might even take between 100 and 1000 individual trades.
Even for futures and forex markets that have a huge daily trading volume, the order book at any moment in time will be much thinner. It’s not like the entire daily trading volume is available in the book every minute of the day. Instead, the depth of the book will be much thinner from moment to moment.
Now, this type of activity from big market participants explains a lot of the movements we see happening in the markets and why particular price areas of higher activity can stay so persistent over time.
From the point of view of big market players, trading isn’t just about speculating on the price direction but also disguising trades and almost playing a game of hide and seek with liquidity. In other words, there’s a reducing amount of revealed liquidity, but a large amount of latent liquidity, so what we see in the orderbook may not always reflect the reality of supply and demand in the market.
Pulling and Stacking
In fact, this is something we can see happening in the order book. Liquidity will be added and taken away. Something we can refer to as ‘pulling’ and ‘stacking’, which we can also see in many markets by looking at the DoM.
This liquidity being pulled and stacked can influence price movements. Just like the example of the big participant adding a huge order in the market and other participants front-running it. Imagine that happened but the order wasn’t genuine. Instead, it was going to be pulled if the price approached it. It’s only being placed with the intention of influencing the market so the trader can then take advantage of the situation.
Imagine if another trader has a big position to build or offload, they might see high liquidity in a price area and aim to execute their market order there. But then the liquidity is pulled and the price moves heavily instead.
This practice of faking supply and demand is known as spoofing. It’s also one of the main causes of the flash crash in 2010. Even though it’s now illegal, you’ll still see it happening in the markets, particularly those that are less regulated.
Stop Loss Hunters
Along with the fear of market makers, many retail traders have bought into the conspiracy about stop loss hunters.
Traders complain that there are big market participants who drive the price up to trigger their stop loss. They’ll point this out at major turning points in the market, where their stop is taken out before the market reverses in the direction they would have wanted. But by understanding microstructure, hopefully you can see what’s going on here a bit better.
Stop losses will usually be placed as a stop order. This is like a mix of a limit and a market order. Essentially, you’re setting a price point in a similar way to a limit order, but if the market reaches that level you automatically execute with a market order. This ensures your transaction takes place, so you can exit a position without the risk of it not being filled.
Now, let’s think about what this means for market activity.
If many traders have their stop losses around a similar price level (as is often the case around major turning points in the market), once these are triggered they’ll all be executing market orders.
For example, if they were going short, their market orders would be looking to buy. All these buy market orders will take the liquidity in that area, lifting the offer and causing the price to rise.
However, if this is a genuine significant level and a potential turning point in the market, we may also expect there to be decent liquidity in the area. So once the initial liquidity is taken to transact with the stop loss market orders, there might still be enough liquidity that the price doesn’t move further. At that point, we may see the price start to reverse.
When this happens, retail traders will often blame a stop hunter; someone triggering the stop losses intentionally before letting the price reverse. But when you consider the microstructure, it explains the situation in a more rational way.
Of course, sometimes a big market participant will know where the stop losses are and use them to build their position or influence the market. In fact, I’ve spoken to one legendary trader who did exactly that with one of his most famous trades. But those situations aren’t as common, most of the time the supposed ‘stop hunter’ moves are simply a normal move in the markets. There isn’t a conspiracy against retail traders.
How This Relates to the Duomo Method
I wanted to finish this guide by explaining some of the ways this information relates to the Duomo Method, and why this approach is so effective for anticipating price moves with precision.
The Duomo Market Theory
Our method is based on the Duomo Market Theory. This is our unique theory that my team discovered and developed over a decade ago in collaboration with a physicist. We figured out that during steady state markets (all quadrants except 'high volume - low liquidity') the market goes through a synchrony effect. When this happens, market oscillations (waves in the price movements) become deterministic.
In basic terms, this means when the market is in synchrony we can anticipate precisely where changes in activity will happen. The validity of this can actually be confirmed in the order flow data.
Order Flow as a Trigger for the Synchrony Effect
Steady state market activity is made up of a combination of random and deterministic price movements. There are many triggers for the market moving from random to deterministic, but one is information about the order flow.
If we think about the efficient market hypothesis, it’s based on the markets being full of informed traders. In other words, the market as a whole knows how information affects the value of an asset and will reprice it based on that. But that’s not the reality. Instead, markets are made up of both informed and uninformed traders.
Therefore, if market participants think big players are informed, they’ll perceive a higher level of activity as a signal that big players know something they don’t. As a result, this will trigger a re-evaluation of their positions, therefore leading to more synchronisation.
Order Flow as a Predictor of Significant Levels
In addition to the points above, we also use order flow techniques and an understanding of auction market theory to anticipate where specific levels or price areas will lead to particular actions taking place. This is based on various factors, including where positions are likely to be defended by bigger players, who has control in the market, and where the price is in relation to the perceived value of the asset in the market.
All of this is taught in detail within the Duomo Trader Development Program. It’s the most comprehensive training for becoming a high performing trader, combined with a precise method of trading that’s extremely effective.