Home Trading Strategies How To Spot Trading Opportunities In A Boring Market

How To Spot Trading Opportunities In A Boring Market

10
0
How To Spot Trading Opportunities In A Boring Market

hey hey what’s up my friend so in today’s episode we’ll be talking about how to spot trading opportunities in a boring market right so what do i mean by boring right so boring here refers to you know market is in a low volatility environment market isn’t going anywhere maybe it’s due to seasonal tendencies that maybe end of the year summer holidays blah blah blah whatever right market is boring so what now how do you trade such market conditions so there are a few tips for you right number one change your time frame right here’s the thing if you see that the market is boring on the daily or the weekly time frame if you change time frame to let’s say the four hour time frame the one hour time frame things will look pretty different right there will be range for you to trade there will be price structure right that you know you can look to trade off where it previously on a higher timeframe it might not be visible so the first tip that i have for you is to know change your time frame if the daily weekly is boring try going down to the one hour time frame the four hour time frame you know you might get a different set of uh picture altogether number two adjust your trading strategy so maybe on the higher time frame like the daily you’re used to trading breakouts used to trading you know higher volatility market environment but when volatility dies out you know you kind of get confused you’re lost man what should i be doing do i buy do i sell do i stay out yeah so in such market condition i have a something for you to consider since you know that the daily time frame let’s say it’s in a low volatility environment the range of the candles are pretty small you know it seems that you know it’s very difficult to make you know buying and selling decisions because the range is just so small so what you can do is to go down to a lower time frame maybe the 15 minutes or the one-hour time frame right because when you see such a tight consolidation on a higher time frame chances are on the lower time frame right that type consolidation right is actually a range so you can actually plot out your support resistance right the highest and lows of the range and once you have plot out the highs and lows of the range you look to buy support and sell resistance now i know this is asking quite a bit because you’re actually moving from a higher timeframe trader to a like a day trader kind of you know transition so again do this only if you’re comfortable and this is just a suggestion right by you know changing your different strategy right according to the time frame okay and uh third thing right if you’re not comfortable you know swapping from a higher timeframe to a lower time frame then guess what you don’t have to trade that particular market that you are used to right go and trade other markets just because let’s say the fx market is boring doesn’t mean the stock market is boring it doesn’t mean that cryptocurrencies is boring it doesn’t mean the futures market is boring because those markets might have action volatility in those markets might be you know at a really good level where it’s favorable for your trading style so don’t just focus on one market don’t just let’s say trade fx or don’t just let’s say trade a particular stock right there’s a lot of markets out there and these days right there’s a retail trader one brokerage platform can give you access right to so many markets so keep your eyes peeled open right to opportunities out there don’t just you know stay to stay comfortable with one or two sectors because really there’s a lot out there okay and next thing right if you don’t want to you know get out of your comfort zone then the next thing you can do is to research right take this time to research new trading strategies right to look through your trading journal and see how you can improve on things right since market conditions are not favorable to you it doesn’t mean you cannot be productive right you can always research new strategies maybe breakout strategies mean reversion strategies trend following you can always study your trading journal and see how you can make tweaks and improve your trading results that’s another thing you can do and another thing you can do is go fishing right okay so if you don’t want to be trading and market conditions are not favorable then hey guess what you don’t have to be trading right you don’t have to force trades when market conditions are not favorable go fishing go leave ways go do things you love come back again right when the markets are more favorable to your trading strategy and the last thing to bear in mind is this is that yes markets can be boring right every market they have their cycle right moving from low volatility to high volatility environment but the key thing to note is that it won’t stay boring all the time in fact the more boring it is right the greater likelihood right that you expect right explosive action right in the coming future okay that’s how volatility works when it goes to you know low volatility environment volatility is about to pick up and when it picks up right then it will start to transit into a low volatility volatility environment and vice versa all right so don’t expect the markets to be boring forever keep your eyes you know uh peel right alert to any potential trading opportunities that could come sometime soon okay so a quick recap number one you can always change your time frame if the market is boring number two you can adjust your trading strategy number three you can trade other markets like stock futures forex whatsoever number four research new trading strategies go through your trading journal and number five go fishing right if really if there’s nothing for you so with that said i wish you good luck and good trading i’ll talk to you soon you

LEAVE A REPLY

Please enter your comment!
Please enter your name here