The 5-Minute Narrative: Building Storylines Before You Trade
Why the Best Traders Think in Price “Stories,” Not Just Setups
Ever feel like the market just snapped in a direction and you were caught totally off guard?
Or you took a setup that looked perfect, but something about it felt off… and it was?
Here’s the problem:
Most traders enter setups.
Great traders enter storylines.
They don’t just see patterns.
They see narratives; price behavior that makes sense in context.
Let’s unpack this skill.
Price Always Tells a Story
At any moment, price is asking:
“Where did we come from?”
“Who’s in control?”
“Where’s the pain?”
“What would trap the most traders here?”
When you learn to answer these before you click “buy” or “sell”…
You stop reacting and start anticipating.
The 5-Minute Narrative Ritual
Before every trade, ask yourself:
1. What has price been trying to do?
Trend higher? Consolidate? Fake a breakout?
2. Who’s likely trapped?
Buyers stuck at highs? Sellers shorting into support?
3. What would confirm that story?
Liquidity sweep? Strong rejection? Reclaim of broken level?
4. Where is the cleanest entry if that story plays out?
At the trap edge? On the reclaim? After confirmation?
5. Where would the story fall apart?
What price action would prove you wrong fast?
This is how you go from pattern-chaser to price narrator.
Real-World Example
Let’s say:
Price is chopping just below a key resistance zone (previous swing high)
Volume is drying up
You spot buyers still trying to push through
Your Narrative:
“This looks like a trap. Price is likely to spike above that resistance, trigger breakout longs, and reverse hard.”
Now you wait:
If the spike happens and fails → short the reversal
If it breaks and holds → your story was wrong, you adapt
Either way, you weren’t guessing; you were reading the tape.
Why This Works
Because markets aren’t just price, they’re people.
And stories are how people behave.
When you think in stories:
You anticipate traps and fakeouts
You trade with clarity, not noise
You adapt when the story changes
Try This Today
Before your next trade, write out the price story. One sentence.
Example:
“Price swept the lows into support during NY open. If buyers reclaim the midline with strength, the trap is likely sprung and I’ll look for longs.”
Keep it simple. Keep it sharp.
Narrative thinking = discretionary edge.
Next Issue:
“What Makes a Great Trade Great (Beyond Profit)”
We’ll break down why not all wins are good trades—and how to measure true quality.
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Comment: What’s your process for building pre-trade conviction?