One mistake I see amateur traders make is how optimistic and pessimistic they get upon price swings in a ranging market
Ranging market filters to keep in mind: 1. Low realised volatility score = (High+Low)/2 across 20/40/60 days 2. Confined to value (Draw volume profile tool across 10-20-30 days and see how many times has it broken above or below value area) Any extreme impulse is more often than not in a choppy market is an easy fade. These can also be your news driven events creating the volatility. So it is much more profitable to wait for some confirmations to look for continuation setups if overall market doesn't support trends.
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One mistake I see amateur traders make is how optimistic and pessimistic they get upon price swings in a ranging market
Ranging market filters to keep in mind:
1. Low realised volatility score = (High+Low)/2 across 20/40/60 days
2. Confined to value (Draw volume profile tool across 10-20-30 days and see how many times has it broken above or below value area)
Any extreme impulse is more often than not in a choppy market is an easy fade. These can also be your news driven events creating the volatility. So it is much more profitable to wait for some confirmations to look for continuation setups if overall market doesn't support trends.