Have you ever felt your profit expanding smoothly after a perfect entry, only to see a single bearish candle appear and feel the urge to exit before profits vanish?

“What if it retraces to the breakeven? I should take profits now.” Right after pressing the close button for just tens of pips, the chart suddenly surges in the intended direction by 100 pips, 200 pips...

Conversely, at a loss, traders often cling to the belief that “it will come back someday” without basis, wiping out multiple prior profits with one loss. This is the classic“small wins, big losses (dollar-cost dragging)”loop, which, no matter how high your win rate, leaves your total net result negative.

Why do many traders chicken out in the middle? The root cause is not a matter of mindset or perseverance, but a failure to understand the market’s most important fundamental principle“Prices go looking for orders” mechanism.

1. The True Nature of Chicken Profit-Taking: Not Mental Weakness but Absence of Destination

When you can’t grow profits in trading, many traders retreat to psychology arguments like “my mental strength is weak” or “I must improve holding power.” However, chicken profit-taking cannot be cured unless the structural problem is solved.

As behavioral economics’ “prospect theory” proves, humans instinctively feel, when profit is being made, “we want to lock in profits immediately to avoid pain,” and when facing losses, “we want to recover the principal by ignoring probabilities.” If you trade by emotions, you will inevitably converge to “small wins, big losses.”

If you run blindly toward an unknown destination, any minor reverse movement will scare you and halt you. Conversely, if the destination is clearly known, you can hold positions through noise and temporary pullbacks until the destination is reached.

2. The Market’s Essential Principle: “Prices go looking for orders (liquidity)” What Does It Mean?

Then how is the market’s “destination” determined?
When you drill into the price fluctuation mechanism to its core, you arrive at one absolute truth. It is“Prices go looking for thick orders (liquidity)” as a physical-law-like principle.

What governs FX and the Gold market are not individual retail traders, but large institutions moving billions of dollars—institutional investors, hedge funds, central banks, etc.

For them to enter or exit large positions, there must exist equally scaled opposing orders at the same price range to counterbalance them.

If enormous settlements occur in a price zone with few orders, the price will slip due to the trader’s own orders, causing disadvantage. Therefore, large investors deliberately pull prices into zones where orders from investors worldwide accumulate (stops and limits), and place their orders there to offset and execute.

3. The True Nature of Liquidity Pool Sought by Large Investors

The area where dense orders accumulate that large investors target for settlement or setup is called the “Liquidity Pool” in Smarts Money Concepts (SMC) and ICT theory.

On the chart, the points where liquidity tends to accumulate are mainly three places.

Large investors target these zones, catching crowd stops and forcing rapid price moves (the so-called “stop hunt”).

If you have experienced prices reversing the moment you’re stopped out, that moment may be when you became a liquidity provider (sucker) for large investors. However, viewed differently, you can understand that “this liquidity destination is the true goal the market aims for.”

4. [Practical Technical] Visualizing the Destination where Orders Gather on the Chart

So how can we objectively grasp the price’s target destination on the trading screen? Here are three concrete approaches explained.

Approach 1: Arithmetic Calculation of N-Waves (ABC Waves)

Markets move in waves. When you confirm the origin (A), the pull-back high (B), and the starting point of motion (C), you calculate the next propulsion energy based on the A-B range, which is the “N-value (expansion).”

• 100% (N-range): The basic target extending the A-B range from point C.
• 161.8% (FE expansion): A standard liquidity accumulation zone when the trend is strong.
• 200.0% (Double N-range): The climax energy release and final objective where massive settlement orders converge.

Approach 2: Automatic Wave Detection via AI/Algorithms

Manually drawing Fibonacci lines involves trader subjectivity (which wicks to use), hurting reproducibility.

AI-based algorithmic analysis solves this. AI detects wave formation patterns and expansions automatically, and draws target lines like 161.8% and 200.0% on the chart with an expectedness score (e.g., AI SCORE 85+), so anyone can identify the common destination without deviation.

5. 【Practical Application】Concrete Trading Strategy to Eliminate Chicken Profit-Taking

Turn the theory that “Prices go looking for orders” into practical actions you can apply from tomorrow's trades. The three-step points are below.

6. Summary｜Once the Destination is Visible, Fear of the Market Disappears

In FX and GOLD trading, today is the end of fighting the market with emotions or perseverance alone.

What’s needed to win is not meaningless mental training, but understanding the universal principle that “Prices go looking for orders (liquidity)” and accurately drawing the destination on the chart.

• The core cause of chicken profit-taking is absence of destination, not lack of grit.
• Large investors move prices toward zones where crowds’ orders accumulate to settle their enormous positions.
• If AI or mathematical calculations visualize targets like 161.8% and 200%, you won’t be swayed by intermediate noise.

From the “darkness where you don’t know how far it will extend” to a world where the goal is clearly visible to large players. Simply changing perspective can dramatically improve your trading results and your mental state.

The method to build a trading environment where the destination is visible and the exclusive know-how are available below

Please check now

Awaited Next-Generation Environment: AI WAVE MT5 Version Finally Released

The MT4 logic remains intact, and the MT5 (MQL5) version that maximizes “visualizing entry rationale” and “exceptional operability” is now released.

“I don’t know when the next wave will be detected”

“I get cut off when multiple charts are open”

Such small stresses and concerns in prior trading are all resolved by MT5’s advanced, proprietary features.

Why does price reach these AI-indicated target widths (target lines) almost like a magnet?

The answer lies in the market’s fundamental behavior.
That is,“Prices go looking for thick orders (liquidity)” as a fact.

The large-scale funds and institutions that move the market require locations where massive opposing orders accumulate to execute their sizable settlement orders.

Where is that? It’s where many crowd traders place stops and new limit orders—technically significant thresholds.

The lines like 161.8% and 200.0% computed and drawn by AI WAVE are not mere numbers. They visualize the zones where global orders concentrate and large players target settlements. Because the destination (the liquidity cluster) is known in advance, you can hold positions with confidence without being swayed by noise or temporary reversals.