Episode 5: Balance and Imbalance
After identifying the value levels, we ask: Is the market in balance or not?
• Balance: Price moves sideways within a range around value. Here, sell the highs and buy the lows with caution.
• Imbalance: Price leaves the range and moves decisively toward a new value. Here, trading with the trend is preferable.
⚠️ Most beginner losses come from applying a balance approach in an imbalanced market, and vice versa.
❓ Is today’s market balanced or trending?