How to recognize market environment?

How to recognize market environment?

Environment. It is something that we have to take care of not only around us, but inside our wallets as well.

When it comes to the deals of trading it is not only important to know all of the technical tools, but also understand where and how we are supposed to use them.

In case you have gained a slight understanding of what it is like – to understand and feel every corner of the market – good for you! but all of the rest of us mortals may still try and get a grip of what it all means and how to work them.
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Admit, a lot of you are feeling as if they have been given the instruction of piloting the plane. You know how all the buttons work, but you do not know how to start it. EXACTLY! That is the feeling that you are supposed to feel right now. And I am here to tell you that it is absolutely normal.

All of the tools that can help us determine whether the trend goes on or reverses are pretty much useless or can even harm in case we are using them under the wrong circumstance and in the wrong market environment. We need to understand the market before we can even begin to choose our indicators and our trading tools.

And so It is time for us to learn how to determine the correct market conditions that we are in.

For start I am going to say just this – there are three main market scenarios. Market can be:
  • Trending up
  • Trending down
  • Ranging
And after this it is going to become clear, how to start the plane... flying it is a totally different matter on the other hand.  
Each of them has different features and each of them has different technical tools and analysis that work perfectly with them. After all, all of the tendencies in them are different.

And we are going to be talking about every one of them. And after this it is going to become clear, how to start the plane... flying it is a totally different matter on the other hand.  

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