MARKET PHASE AND SETUPS

REGIME CHANGE:

When market shift from one Phase to Another, tools used to trade in one phase may or may not work in another phase.

 

For this purpose we should have:

• Different tools to trade in different phases
• Knowledge to identify a regime change in advance.

 

Market movement have two components direction and volatility. These two together creates four possible combinations.

FOUR POSSIBLE COMBINATIONS:

 

Examples:

1: Strong Trend

 

2: Choppy Trend

 

3: VOLATILE RANGE

 

4: NARROW RANGE

 

FOUR POSSIBLE COMBINATIONS: PROFITABLE SETUPS

REPHRASE YOUR QUESTION: WHAT IS THE TREND????

 IS THERE A TREND????