I was recently asked about market behaviour around key strength and weakness lines, so I thought I'd share some insights to help you avoid common trading pitfalls.

When looking at charts, I've noticed many traders miss crucial signals that could save them from unnecessary losses. Let me walk you through what I look for before entering a trade.

Reading the Market's Language

On a recent 30-minute chart, I observed the market tracking back and forth around a key level. Above this line we have strength, below it weakness. What's particularly telling is how the market spent a couple of hours moving up above the line, then retreating below it repeatedly.

This type of meandering movement is sending a clear message: the market isn't breaking out into what I call a "profit release" – those beautiful, decisive moves where real money is made.

I remember sitting at my desk during the Asian session last week, watching this exact pattern unfold. The market kept crossing my line without conviction. I put my trading pad down and simply observed.

The Market Maker's Game

This behaviour isn't random. It reflects the market makers' business model – they're creating liquidity while containing price within a range before making their actual move. They're essentially building belief patterns in retail traders' minds before breaking those patterns for profit.

When you see this sideways, indecisive movement, it's best to keep your powder dry. The market makers are setting a trap, and patience will save your capital.

Finding the Right Entry Point

So when should you enter? I look for the market to establish pressure points – areas where we can see clear highs and lows forming a gradual shutdown pattern.

My PAT indicator often highlights these pressure zones with diamond formations. This proprietary tool has saved my trading account countless times by identifying these setups before they become obvious to everyone else.

The ideal scenario unfolds when the market breaks from these pressure points, makes a decisive move beyond previous highs, pulls back slightly, and then continues. This initial breakout changes the market beliefs that had been building throughout the consolidation period.

A More Specific Example

Let me share a recent trade where the PAT indicator caught a perfect setup. The market had been consolidating for hours, then suddenly broke higher, retested the breakout level, and continued upward. Instead of chasing the initial spike, I waited for that crucial retest, got a favourable entry price, and rode the move with minimal risk.

I don't wait for the market to blast through previous highs before placing a buy order. That's often too late. The mechanics of market movement mean that after breaking through significant levels, prices typically pull back before continuing their journey.

By waiting for this pullback and then entering as the market starts moving in my direction again, I can place my stop order at a logical level. This approach gives me a low-risk trade with excellent potential, especially when trading above the strength line we've identified.

Professional Training Makes the Difference

Reading these market signals consistently takes practice and proper guidance. In my trader training and mentorship programs, I focus heavily on interpreting these patterns and using tools like the PAT indicator to identify high-probability trading opportunities.

Many of my successful students started precisely where you might be now – confused by market noise and making entries at the wrong time. Through personal coaching, they've learned to decode market maker activity and trade with the professionals rather than against them.

The ability to recognise when to stay out of the market is perhaps even more valuable than knowing when to get in. This disciplined approach has transformed my trading career, and it can do the same for yours.

If you're tired of being caught in these no-win consolidation traps, consider professional trader training to elevate your skills and perspective.