🚨 Join Alex & Geof at 2:30 p.m. ET🚨
After a quiet weekend, Alex is utilizing his full toolkit to determine where this volatile market is headed next. He is breaking down potential setups using The Wave and revealing the specific stocks on his radar for the week ahead on the show today [tap to join us for Profit Panel]
I’ve got to tell you — one of the most reliable patterns I track isn’t some complicated indicator or exotic strategy. It’s simply watching where the market moved too fast and left people behind.
I call these areas imbalances, and they represent some of the highest-probability setups I trade. When there’s so much buying or selling pressure that price moves too quickly, it leaves a lot of participants at the door.
That inefficiency? The market typically wants to fill it.
Let me walk you through how I use this concept to identify specific price targets and time my entries, because when you learn to focus on price itself instead of all the noise, things become much clearer.
Price is price — and that’s what we trade.
Finding Room to Run
When I’m analyzing whether there’s room for a market move, I look down and to the left on my chart to see whether there’s inefficiency.
This simple visual check tells me whether price has space to travel or whether it’s likely to stall out.
Think about how a typical gap works. When a market experiences massive buying pressure on a fast move higher, it creates a significant structural imbalance.
If it leaves an open window from a previous session’s close to the next open, it creates a vacuum. Markets typically don’t like to leave those gaps unfilled — it’s one of those tendencies you can count on more often than not.
We often see a market carve out a tight consolidation floor — a basing pattern where price spends a lot of time. When price suddenly breaks away or gaps out of that zone, that rally-based-rally move leaves behind a clear void.
That exact zone of imbalance is what allows our software to map out highly accurate target levels right at the edge of the old baseline.
The same logic applies on the downside. A sharp, unsupported drop creates a vacuum above it, mapping out the next logical upside targets when the bounce occurs.
Looking back at how previous signals played out — like watching a stock make a clean, uninterrupted 20-point run off a prior buy signal — reinforces how historical behavior gives us confidence in what price is capable of doing next.
The Catalyst Connection
One thing traders underestimate is how catalysts interact with these inefficiency zones. A gap or imbalance might mark the destination, but a news event is often the fuel that gets us there.
We see this constantly when a market pulls back right after a major economic report or a Federal Open Market Committee (FOMC) release.
The immediate reaction surprises a lot of people, but that’s the point — key events can create the exact burst of volatility needed to push price right back into an unfilled gap or imbalance you’ve already mapped out.
That’s how I treat major reports. They’re not random shocks. They’re controlled explosions that drive the market toward the inefficiency I’m waiting to trade.
When there’s no catalyst and we’re stuck in the middle of a trading range, anything can happen.
But when you combine an unfilled gap, significant imbalance and a major news event, that’s when institutional capital and algorithms show up and clear a path.
Without a catalyst, price can drift aimlessly due to low liquidity. But once that institutional activity kicks in, it pushes the market directly into the zone, fills the gap and returns right to the precise levels printed by the software.
That’s why I always tell people: Don’t just throw a buy limit order at a level and hope. Wait for price to push into your target zone, confirm the inefficiency is being filled and then look for your entry.
The market leaves clues everywhere about where it wants to go next — you just have to know where to look.
Silas Peters
Silas Peters TradingÂ
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.Â
P.S. I’m Exposing the Week’s Biggest Insider Buys
Pay attention when companies start issuing stock buybacks.
It’s either they’ve generated enough revenue to increase their ownership, or someone somewhere has seen something coming.
I’d pay even more attention if those buying are the company’s top executives.
Which is exactly why I’m going live at 2 p.m. ET today.
I’ve just flagged this week’s biggest insider stock buys, and I believe I know exactly why.
If you join me live in the room, not only will I show you exactly what company and stock these insiders are buying up massively…
I’ll show you exactly how I plan to target cash on the stock as it jumps.
No trading guarantees, of course.
But I’d highly recommend you don’t miss today’s briefing.
