Defining the Market Environment

Have you considered how you should classify the market environment? If not, it's well worth doing so. The nature of the current market environment will determine the game plan that you bring to your trading session.

There are numerous ways to classify it.

  • Trending vs Ranging! 
  • Accumulation, Mark-Up, Distribution, Mark-Down!
  • Trending Volatile, Trending Non-Volatile, Ranging Volatile, Ranging Non-Volatile! (example below)
  • At Major S/R; In-between Major S/R!

 

There are of course others as well. It's not so important which you choose. Rather that you've defined the different ways you see the market and considered:

  • How you'll trade that environment; and
  • How you'll identify the end of that environment and the transition to a new environment.

 

market environment - trending non-volatile

market environment - trending volatile

market environment - ranging non-volatile

market environment - ranging volatile

Happy trading,

Lance Beggs


Written by

YourTradingCoach – Admin

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