Que es el comercio de opciones sobre acciones24 comments
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In this article I want to share with you my thoughts about trending and ranging markets and give you some tips how to identify them and how to choose the best market condition for your strategy.
I am trying to avoid over trading. So, my goal is solid trades every day. Trending or Ranging market? Which is the best for your strategy? In this screenshot we have a trending market. Notice that the price always makes new higher highs. Look at the 8 period RSI. The price is moving between 70 level the higher line and level Why is this happens? There are many reasons. Maybe some good news for Euro, maybe the price broke a strong past resistance but the fact is that if your strategy is trading reversals like I do in many cases this is not a good time for you.
So, the best choice is to avoid trading reversals in a trending market. In this market condition you should trade and follow a strategy with the trend for being profitable.
In this case we have a ranging market. There is a symmetrical channel here and you can take your trades for reversals with safe inside it. I took two ITM trades in the put arrows. In every case I was waiting for the price to touch the resistance and the next candle was negative. Notice my second trade in the second put arrow.
The previous candle of my entry hit the resistance but we had a rejection in the same minute and the price was away from the reistance. The next candle was positive and closed in the resistance and I took an ITM put. MACD crossovers is another way you can use for extra confirmation,too. Hallo Traders, In this article I want to share with you my thoughts about trending and ranging markets and give you some tips how to identify them and how to choose the best market condition for your strategy.