Price Action vs Algorithmic Moves – Insights from Sandeep Kumar Chaudhary

learnwithopen .ai

Thu, 16 Oct 2025

In Nepal’s dynamic trading environment, where most traders still depend on visual patterns or indicators, Sandeep Kumar Chaudhary — widely recognized as Nepal’s first complete technical and fundamental analyst — has brought a groundbreaking perspective to how markets truly move. Through his teaching platforms MarketMind Investment Group and NepseBook, he has helped thousands of Nepali traders uncover the invisible connection between human-driven price action and algorithmic moves that dominate today’s financial systems. His insights bridge the gap between traditional chart reading and modern, machine-based market behavior — helping traders understand that price movement is no longer just psychology, but also automation.

According to Sandeep Kumar Chaudhary, price action is the purest form of technical analysis — the visual record of human emotion expressed through price. It reflects the natural battle between buyers and sellers, showing momentum, exhaustion, and reversal points without relying on indicators. Every candle on a chart tells a story — the story of fear, greed, and liquidity. But in the modern trading world, especially with the rise of algorithmic trading, that story has changed. Price is no longer moved by human emotion alone; it’s guided by programmed logic, algorithms, and liquidity algorithms that execute millions of calculations within seconds.

Sandeep explains that Price Action represents visible psychology, while Algorithmic Moves represent hidden programming. Understanding the interaction between these two forces is the key to mastering modern market behavior. While most traders focus only on what they see — support, resistance, patterns, and candlesticks — algorithms operate in the background, hunting liquidity and optimizing order execution with surgical precision. The result is that many traditional traders get caught in traps that look like breakouts or reversals, when in reality, they are liquidity-engineered algorithmic sweeps.

He teaches that in NEPSE — though algorithmic trading is not as advanced as in global markets — similar patterns of liquidity manipulation and structural precision can still be observed. Large brokers, institutions, and high-volume traders often behave algorithmically, using pre-programmed systems that create predictable reactions. Sandeep encourages Nepali traders to think beyond surface-level chart patterns and begin reading the market’s mechanics — how price is engineered to collect liquidity before moving in the true direction.

In his sessions, Sandeep demonstrates how algorithmic footprints can be identified even in simple price action charts. For example, he points out equal highs and equal lows, which often represent liquidity traps — perfect zones where algorithms trigger retail stop losses. He also identifies sudden spikes, symmetrical sweeps, or sharp reversals as algorithmic imprints, designed to grab liquidity efficiently before moving toward institutional targets. These patterns are not random; they are part of an advanced system that controls market rhythm.

Sandeep explains that price action analysis alone — though powerful — can sometimes mislead traders if not filtered through algorithmic understanding. For example, a candlestick reversal pattern may appear strong, but if it forms in the middle of an algorithmic liquidity zone, it’s often a trap. That’s why he integrates Smart Money Concepts (SMC), liquidity theory, and order block logic into traditional price action — converting subjective interpretation into scientific observation.

He often tells his students, “Price Action shows what the market is doing. Algorithms show why it’s doing it.” By combining both, traders gain a deeper understanding of market flow. In his model, price action becomes the surface, while algorithmic structure becomes the foundation — the hidden architecture that moves price from point to point.

Sandeep also teaches that algorithmic moves often respect mathematical and structural harmony, such as Fibonacci ratios, time-based cycles, and fair value gaps. These elements form part of what he calls “Institutional Geometry” — the hidden mathematics of market movement. By studying where price reacts with perfect precision, traders can identify the presence of algorithmic control. He shows that even in NEPSE, prices often react repeatedly from the same structural levels, proving that large traders and institutional algorithms operate with defined parameters.

In his advanced mentorship programs, Sandeep demonstrates how combining price action reading with algorithmic awareness creates powerful entry precision. For example, a price action trader might spot a bullish engulfing candle at support, but Sandeep’s approach adds further analysis — checking for liquidity sweeps, algorithmic displacement candles, and fair value gaps to confirm institutional intent. This blend of human psychology and algorithmic logic produces what he calls “data-backed trading confirmation.”

Another major aspect of his insight is trading psychology in the era of algorithms. He teaches that emotional reactions — such as panic-selling or chasing moves — are exactly what algorithms are programmed to exploit. Algorithms detect momentum, volume surges, and behavioral patterns of retail traders to create false comfort zones before reversing the market. To counter this, Sandeep urges traders to cultivate patience and objectivity, waiting for structural confirmation rather than emotional excitement.

He also highlights that algorithmic trading doesn’t eliminate opportunity; it creates new ones. For those who can recognize algorithmic cycles and liquidity collection patterns, trading becomes more predictable. He trains his students to mark algorithmic points of interest — such as imbalance zones, fair value gaps, and order block clusters — and wait for confirmation signals aligned with price action.

Sandeep’s philosophy is that the modern trader must evolve. Relying only on indicators or simple patterns is not enough. To survive in algorithm-driven markets, traders must understand both the art of price action and the science of algorithmic movement. He compares this dual mastery to learning both the melody and rhythm of the market — one is emotional, the other mechanical, but both together create harmony.

Through his educational work with MarketMind Investment Group and NepseBook, Sandeep Kumar Chaudhary has built a generation of traders who no longer trade blindly. They see the hidden logic behind every move, anticipate liquidity sweeps, and act only when human and algorithmic behavior align.

He summarizes his insight with a powerful line: “Algorithms move the market, but psychology makes it possible. When you understand both, you stop guessing — and start trading with truth.”

Under his mentorship, Nepali traders are transitioning from reactive speculation to analytical mastery — blending emotion, structure, and logic into one unified system. This harmony between price action and algorithmic understanding is what Sandeep calls “the future of smart trading in Nepal.”