Any trading strategy must start with an understanding of the current market price, which serves as the foundation for all trade-related decisions. Having this knowledge is essential for placing orders—market, limit, or stop—effectively.
Furthermore, it is essential to the calculation of risk-to-reward ratios, which is a crucial statistic in any trading strategy. The market price gives you instantaneous insight into supply and demand dynamics, enabling you to gauge sentiment in the market. This data will directly affect your total profit and loss by helping you set realistic stop-loss and take-profit levels.
Watch the video below to learn how you can interpret the current market price: