Results 1 to 5 of 5
  1. #1
    Rookie Member iSuccessLab's Avatar

    How do you read what type of market it is !!!

    I know many traders switch their strategies depending on how the market is for the day... does anyone have any good resources to learn how to tell what type of market it is when you start your trading day? Is it just either trending or ranging... or are there more we need to be concerned with?

  2. #2
    Legendry Member Okane's Avatar
    Hey.
    First, the market can be heavily influenced by
    high impact fundamentals which you can read about on websites
    such as forexfactory.com or other sources so you would know if you should
    stay away, or when you should stay away. Today was a good example.
    Price of EUR/USD kept going up due to bad news for the dollar.
    I am no news trader so I just stayed away from trading, as hard as it was :P.
    So fundamentals is the first thing to check.

    Second, market is trending as usual, no fundamentals are affecting the market.
    Then usually I just look at support and resistance because everyone else in the FOREX
    market looks at the same things - to buy or to sell at major levels.
    So I try to just stay with the trend, trade the retracements for example.

    Knowing what kind of market it is requires some experience.
    I mean, if you make me tell you what kind of market it is on the
    S & P 500 tomorrow, or even today I would say I have no idea. Cause I just
    don't trade that asset. I am only familiar with my asset/s, recognize their
    patterns and know what kind of market it is.
    Live Webinar: Hidden Content
    Join My Skype Group: Hidden Content

  3. Thanks Martin Kay thanked this post
  4. #3
    Veteran Member Dan21's Avatar
    You can start to read, predict and understand the market, when you've traded long enough (stared long enough at those charts) to develop a sense for your instrument.

  5. #4
    Moderator Kolyo's Avatar
    You can not predict what will happen in the future with certainty, but you can access what kind of market you are trading in. For example it is easy to distinguish trending from ranging market. If you are making new highs or new lows consecutively you are trending, if the price is stuck in a given price range we are ranging. We may be in a trend on higher time frame and still in range on the lower, but you must base your decision first on the time frame you are trading in, and than on the higher if there is meaningful information. It is not so difficult but keep in mind we are dealing with probabilities, we can’t predict when a trend will end or when there will be a breakout of a range for sure.
    "The goal of a successful trader is to make the best trades. Money is secondary." - Alexander Elder

  6. #5
    Specialist Member protrader's Avatar
    If you are a beginner, try to focus only on trending market because it is safer to go with the flow. Ranging market is dangerous because moves are much less predictable.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
3