This post is based on the video down below.<\/p>\n\n\n\n As we have laid out in the introduction, trading edge is not as straightforward concept as it seems. We should be aware that all chart\/orderflow\/market profile patterns just formalise market behaviour. They provide abstraction into composable clues. That abstraction is great on one hand, because it gives our brain ability to quickly recognise patterns. On the other hand every abstraction introduces compression a simplification of a very dynamic system. Just because you are able to highlight pattern that form a setup, it does not mean you have an edge. Here is the list that Richard has wrote on the topic of edge vs setup:<\/p>\n\n\n\n Great analogy Richard used was the one from tennis. Imagine you are great at hitting forehand down the line. Just because you are good at hitting that specific stroke, it does not mean you can hit it every time and expect a winning point (red X down below in the image). Position of your oponent matters a lot, therefore that forehand down the line should be used only when odds are in your favor (blue X). The same applies to trading. <\/p>\n\n\n\n Now, lets have a look at specific examples in Euro and Bund.<\/p>\n\n\n\n Down below we can see on the right side the blue zone. That zone is a key reversal zone. We have a crucial location in which we want to observe orderflow and price action. <\/p>\n\n\n\n We can see that market breaks strongly through, but closes below. This can be considered a double top with strong exhaustion move. Our edge is in the execution the move down towards first support. If trader recognises the lack of buying and increased selling back below 73 level, you can enter the trade with the favorable risk-reward.<\/p>\n\n\n\n The point of this double top trade is to show you that the crucial location we have chosen, the excess it has created and orderflow all came together and created a trade with edge. The setup in Euro was the double-top, but other contextual nuances effectively created the edge of the trade.<\/p>\n\n\n\n Now if we compare it to the Bund trade, where market reached important location, the context is different. Yes, market produced double top but the bullish structure from last two sessions clearly suggest that the point at which we want to initiate our short (see below line “confirmation point”) might become difficult for shorts to push through. <\/p>\n\n\n\n If you compare both Euro and Bund, they tend to share double top setup, but contextually both are very different. It is the nuances that essentialy create the edge, not just a pure abstracted pattern. Think about this concept in trades you usually take and ask yourself what can elevate the setup to a trade with edge.<\/p>\n\n\n\n Thanks for reading. If you liked this type of content, you might check these videos as well:<\/p>\n\n\n\n If you like our content and would like to improve your game, definitely check one of our courses that teach you all the techniques presented by AXIA traders from a market profile<\/a>, footprint<\/a>, or order-flow<\/a>. If you are someone who likes to trade the news, we have a great central bank course<\/a>. And if you are really serious about your future trading career, consider taking AXIA\u2019s 6-Week Intensive High-Performance Trading Course<\/a>.<\/p>\n\n\n\n Trade well.<\/p>\n\n\n\n JK<\/p>\n","protected":false},"excerpt":{"rendered":" How To Improve Your Trading Edge Introduction In this blog post, we will discuss how to improve your trading edge. Every trader seeks the edge. Trading edge is what gives you the ability to make money in the market. On the surface, we all understand the idea of edge, but we consider the edge to […] More<\/a><\/p>\n","protected":false},"author":9,"featured_media":13613,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[142],"tags":[],"wps_subtitle":"","_links":{"self":[{"href":"https:\/\/axiafutures.com\/blog\/wp-json\/wp\/v2\/posts\/13587"}],"collection":[{"href":"https:\/\/axiafutures.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/axiafutures.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/axiafutures.com\/blog\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/axiafutures.com\/blog\/wp-json\/wp\/v2\/comments?post=13587"}],"version-history":[{"count":12,"href":"https:\/\/axiafutures.com\/blog\/wp-json\/wp\/v2\/posts\/13587\/revisions"}],"predecessor-version":[{"id":13620,"href":"https:\/\/axiafutures.com\/blog\/wp-json\/wp\/v2\/posts\/13587\/revisions\/13620"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/axiafutures.com\/blog\/wp-json\/wp\/v2\/media\/13613"}],"wp:attachment":[{"href":"https:\/\/axiafutures.com\/blog\/wp-json\/wp\/v2\/media?parent=13587"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/axiafutures.com\/blog\/wp-json\/wp\/v2\/categories?post=13587"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/axiafutures.com\/blog\/wp-json\/wp\/v2\/tags?post=13587"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Understanding Your Trading Edge<\/h2>\n\n\n\n
![\"Tennis](\"https:\/\/axiafutures.com\/blog\/wp-content\/uploads\/2022\/11\/nov112022-01.png\")
Improving Your Trading Edge <\/h2>\n\n\n\n
Euro And Trading Edge<\/h3>\n\n\n\n
![\"Chart](\"https:\/\/axiafutures.com\/blog\/wp-content\/uploads\/2022\/11\/nov112022-02-1024x558.png\")
![\"Euro](\"https:\/\/axiafutures.com\/blog\/wp-content\/uploads\/2022\/11\/nov112022-03-1024x561.png\")
Bund And Trading Edge <\/h3>\n\n\n\n
![\"Bund](\"https:\/\/axiafutures.com\/blog\/wp-content\/uploads\/2022\/11\/nov112022-04-1024x569.png\")