First Trouble Area (FTA)

This lesson is part of a technical analysis series and focuses on the concept of FTA (First Trouble Area). FTA refers to the support or resistance structure nearest to the price and is useful for ascertaining where the market is most likely to give a trade some trouble and using that area to manage or act on the trade. The video covers three use cases for FTA: profit-taking, trade management, and trade entry, as well as timeframes and swing trading tips. The concept is not restricted to trading support/resistance and can benefit any system that deals with turning points in the market. However, the framework requires a degree of discretion, as there are many judgment calls to be made when applying it.