LESSON: Identifying the Current Market
One of the first things we need to assess when looking to enter a trade is what type of market are we currently in!
Knowing what type of market we are in defines where we will play a trade from and how we would manage an existing trade. There are 2 main market structures:
Trending (up or down)
Ranging (Moving sideways in no defined trend)
The most desirable markets to trade in, is the trending market.
The reason for this is because there is already a market bias, we can look for easier more free-flowing trade setups and all we must do is look to get aboard the existing trend and continue to ride it until it finishes.
Many people would have heard of the saying, ‘the trend is your friend, until it bends’. Most people know this however they fail to recognise why it is so important or even what following the trend is.
NOTE: Start putting all these pieces into place and thinking about how your own rules and trading plan want to look as we move forward.
Module Three
Duration: 3 mins
Module Progress:
20% Complete
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