3 Types of Market Movements that Need to Know

Trading with not accompanied enough knowledge will generally only lead to long-term losses. Without knowledge, Forex trading can I say no different from gambling. It could be you who are lucky to get a profit at first. But in the long run, I guarantee you will lose. Therefore knowledge of the market is everything. If you are a beginner trader in Forex, do not rush to claim that your trading system is the greatest and so on. In my opinion, no trading system is really perfect. All trading systems must have their own weaknesses and advantages. Any forex trading system must sometimes do not fit applied in a certain period. Therefore it is very important for us for traders to recognize market movements in the market.

On this occasion I want to discuss about the type of Market movement. Knowing this type of market movement is vital in our trading journey. Trading system that we use usually only fits on one type of market movement only. Therefore it is very important to understand is in the current phase whether the market and whether it is appropriate if we apply strategies A, B, C, and so on.

I just got it. Broadly speaking, price movement on the market can be divided into 3, namely:

1. Trending
In this phase, the price will move up or move down continuously. These times are usually the most sought after by the swing traders. There are many strategies that can be applied to this treding market, one of which is MA intersection strategy, breakout strategy, etc. It is not advisable to use a trading system such as martiangle or oscillator based on the current market conditions are trending.

2. Neutral / Sideways
This neutral period in my opinion is more common in the market than the trending period. We tend to be in a market that moves only to that area alone. At the time of this condition, usually traders who use a trading system that is only suitable at the time of trending alone, will incur losses. But there are some trading systems that are powerful enough to be used at market time sideways. One of them is martiangle, a trading system that uses oscilator like stochastic, RSI and some scalping techniques.

3. Wild
This is a period in which the movement of the market is unpredictable. Movement when the market is wild is very large. Can reach 20-50 pips in just minutes. This usually happens because there is important news coming out, such as: Interest rate change, Fed Chairman talking again, Unemployement Claim data out, etc. Even if the fundamental effect is very strong, the price can even move to more than 100 pips in just 5 minutes. At this time, generally traders will avoid the market and not trade at all.

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