Most traders chase systems, indicators, and strategies, but still fail to achieve consistent results. The reason is simple: without proper TIMING, no strategy works. True advantage lies in being able to identify turning points before they happen. Anticipating where price is preparing to move determines your trading destiny.
3 Real Advantages of Identifying Turning Points in Advance
1. Minimal Risk
Entering near a reversal means your stop-loss can be very tight. This not only reduces risk but also allows you to open larger position sizes. The closer you are to the turning point, the more favorable your risk-to-volume ratio becomes.
2. Maximum Profit Potential
The closer you enter to the reversal, the larger your potential gain. Traders who enter mid-move have limited profit opportunities and are forced to use wider stops.
3. High-Probability Entries
Timing the market means understanding where banks and large institutions are buying and selling. Recognizing the points where demand and supply are imbalanced gives you the most realistic trade direction. Trading against beginners automatically shifts the odds in your favor.
How Can You Spot Turning Points in Advance?
Banks and institutional players identify levels where demand and supply are out of balance. The price reversal occurs exactly at these points. Once price changes direction, it either moves toward the existing order flow or in the opposite direction. This has nothing to do with lagging indicators, but everything to do with real order volume.
By analyzing the buy/sell order zones created by banks:
- If price returns to a demand zone, a genuine buying opportunity emerges.
- If you’ve seen price bounce from that zone once, it proves demand has already exceeded supply.
- If beginners are selling at that same level – they are your counterparty.
This is why “average” traders sell exactly where banks are buying. Their mistakes fuel the professional’s profit.
A Practical Example
Price returns to a demand zone you identified earlier. At that level, large players buy from those who are still selling. You enter with low risk and ride the price toward your target. This is structured trading – timing at work.
- What does the traditional trader do?
- They don’t buy in a downtrend, and they don’t sell in an uptrend – because that’s what the books say. But ask yourself: have you ever seen someone consistently profit in real markets following this “book” logic? Most likely not.
The issue isn’t with the books but with the mindset. Instead of “joining the trend late,” professionals enter before the balance shifts – not at the end, but at the beginning.
For Traders Who Say: “I Just Catch the Middle of the Move”
If the move has already started:
- Where will you enter?
- Where will your stop go?
- What will your risk/reward ratio look like?
Finding the turning point first is not only more profitable but also far safer.
Is trend important? Absolutely. But the winners are those in the market before the trend fully forms, not after. The longer you wait, the higher your risk and the smaller your reward.
For Those Who Say: “I Don’t Know Where Banks Are Buying and Selling”
If you know what to look for on the chart, you will see where they are trading. This is not abstract – it’s the reality of demand and supply in action.
If banks have bought at a certain zone and price has reversed from there, that point is already a proven opportunity. It’s not about textbook definitions of trend – it’s about logic and observation.
The Real Formula for Success in Trading
✅ Identify turning points in advance
✅ Use demand and supply imbalance to your advantage
✅ Align your timing with institutional flows
✅ Minimize risk and maximize reward
This approach doesn’t guarantee that every trade will be profitable. But it does guarantee that your entries will carry:
- lower risk,
- higher profit potential,
- stronger probabilities.
Your profitability depends directly on your ability to spot the same demand and supply levels that banks and institutional traders use. Those who don’t understand this are still stuck trying to “catch the middle” of the market.