Engaging the Basic Setup in Trading

Generally speaking, as traders we are looking to figure out what price is going to do, and where it will likely do it from. Whether we call it Supply and Demand, Support and Resistance, or Institutional Order Flow, and all three of those concepts are slightly different, what we are really saying is 'where can we expect price to change direction from, and how can we have an edge when we select those areas'. Looking at the GBP/USD daily chart, it would seem pretty logical ahead of time, to expect a bullish reaction at 1.3111 (the purple line). When price hit that line on Friday 7/13, someone looking at that daily candle, would have seen a very bearish looking candle.

The real question becomes, how do we get long, into this trade once price hits this 'demand area? This question is easily answered when we drill down to a five minute chart:

Trading can be very hard, but is does not have to be complicated.