FTA ( First Trouble Area) is the first area that price is likely to stop and revers.It is the nearest price level where one can expect some opposing order flow.
We need some space for our trade to move and take our position to profit. Better to ensure that there is some space between our entry and the first point of interest that can give our trade some trouble. Price may not always reverse at FTA. Price often will just stall for a bit before carrying on. It depends on how strong the level it is heading into.Strength of the trend and the price action trigger also matters.If we really think about it, the FTA is also a RR ratio.
FTA could be a recent swing High/Low, a round number, a, price flip zone. or a consolidation border. It is best to try to define these areas from situation to situation rather then one such thing.
Pay attention to FTA so that we can be more logical in our trade planning and management.