Knowing the Condition (Environment) Market
If we imagine there are two different people in the face of the same problem. The first person has a reckless character, spontaneous without much thought, has no plan whatsoever in dealing with the problem. While the second person, more wise is always looking for information about the problems encountered so that know the condition of the problem so that it can affect how the problem can be solved.
Associated with the forex market, which character would you prefer?
Some forex traders cry out by saying that their trading system sucks. Sometimes the system is right, then who’s wrong?
Other times, the system is potentially profitable, but is used in the wrong trading environment.
Experienced forex traders try to find out the right strategy for the current market environment they are trading. If you use the Fibo tool, is it time to get rid of Fibo and look for correction motion? Or is it still in range?
Analogy as a soccer team coach. The trainer will display different games for a particular situation or opponent, you should also be able to determine which strategy will be used depending on the trading environment.
By knowing what market environment we are trading, we can choose trend-based strategies in a trendy market or a strategy tied to the market range.
Are you afraid and worried about not being able to use your sideways trading strategy? How is your trend-based system? You should not be afraid.
The forex market provides many trends and opportunities across time frames where your strategy can be applied. By knowing which strategies are appropriate, you will find it easier to know which indicators will be excluded from your list of forex indicators.
For example, Fibo and trend lines are useful in times of market trends while pivot points, support and resistance levels are helpful when markets move sideways.
Before looking at these opportunities, you should be able to determine the trading environment. Market conditions can be grouped into three scenarios:
- Up Trends
- Down Trends