How market moves
As a trader do you really know how market moves? As a potential trader must you need to know what the market behaves and how market moves? Successful traders know how market move and they make their trading plan according to it. That’s why profitable trader never hurries to enter a trade because he knows market will give him next opportunity soon.
If you want to be a profitable trader must you need to know how market makes a move in uptrend or downtrend?
What if I say that market always have a direction or trend, most of you will laugh
and show me range bound Market , and ask me where is trend here.
But guys if market is not trading in particular time frame it does not mean that it is
not trading in smaller time or same with the larger time. If you change the time
frame than you may see a trend in smaller time frame. So don’t think that market
is ranging 80%of time. you should be looking at proper time frame and find a
trending market to for look for trades
Market is likes to move in trend so let’s break it down for you. In every trend no
matter if it is a uptrend or down trend we got a impulsive move and we got a
corrective move ,and if you have a experience with financial market you will see
this kind of chart again and again.
Now question stand why it moves like that well there are 2 ways to describe it.
1. One is because the market is exhausted and it generating the strength again to
do an impulsive move so the small corrective move is not more than a breathing
time. Where market needs a rest to make a new swing or impulsive move some say
it generating strength to break support or resistance area.
2.it is more of psychology – suppose you are a trader at point (A) you have taken a
long here now market moves in you direction and respect your trade now you are
sitting with profit in point (b) now what you do . You want to cash your trade make
some profit so you close
Your trade at that point , now on that position some stubborn traders are also there
who still want to short so what they think that the move is just over and now it is
time to short now and they want to try to catch the top so market move side way
but it will not have the momentum because it is just a corrective move and after
some time trending side way the price get strength and it break all the resistance
and move up or start a new impulsive move .
