What is buyer and seller failure, how to know when it happens, and how to use it to make profit

The concept of buyer and seller failure is fairly basic:
- Buyers are unable to make new highs / lack conviction behind up move attempts
- Sellers are unable to make new lows / lack conviction behind down move attempts

In the trading community, there is the belief that institutional traders will "run stops". Basically, you take a long, place your stop below the swing low, you get stopped out (lose money), and the market rallies in your original direction. This concept of buyer and seller failure will allow you to recognize when this is occurring and profit from such instances.

I want to stress that it's very important to leave stops in place, NEVER ADJUST A STOP AGAINST YOURSELF, this leads to bad habits! Protect yourself on trades, always assume the worst move against you rather then a quick stop run.