Skip to main content

Trend vs Range Bound Market - How to Trade

To Reverse or Not to Reverse
To Breakout Trade or Not to

Below, I copy something I wrote in the Slack room. Thought' I'll preserve it here. 

1. Trader should know how to differentiate between a Trending Market and a Sideways Ranged / Boxed Market... on The Time Frame they are Looking at.

2. Keeping above in mind, you'll then know that different time frames can have different situations, one time frame is trending the other is sideways.(keep waves within waves within waves)

3. Keeping above in mind , one should trade both situations differently.

e.g. Setup 1 takes this information into account. A setup one tries to signal you, that the 5xHTF is trending while current time frame is sideway.
and since,

FACT: Higher Probably Setups are Breakouts in the Direction of Higher Time Frame Trends

that means there are higher chances of breakouts in the direction of the trend of higher time frame, (which means sometimes it will breakout against it as well) signal is created in that direction. meanwhile on the current time frame it shows a 3 and 4


4. Now when you trade Fruit method, that information does not simply vanish and dies. it's still valid. but you should be able to know what you were doing and translate it into fruit method. You should know this concept and apply it without indicators (purple) indicating it to you. if you don't yet know the above concept then try 5 batches of T20 using Setup 1/2 only.

The POINT I'm MAKING IS Hiding here

Conclusion: from the above the point I'm making is that trade breakouts in the direction of TREND and Trade Reversals in the direction against Trend

don't trade reversals in the direction of RANGE or Breakouts in the direction against trend....

hope this helps and I made my point.

Popular posts from this blog

Count Elliott Wave within 10 Seconds

After Reading this material you should be able to do the following:
Objective 1. Understand Elliott WaveObjective 2. Count Elliott Wave within 10 SecObjective 3. Learn how to use AO
Objective 1


What is Elliott Wave? 

We believe the market has a structure. That structure is Elliott Wave. We also believe that the structure also has a structure and that structure is shown to us on our charts by using our indicator AIMS Levels. EW consists of impulse waves and corrective waves. We are interested in trading the impulse waves and avoid the corrective waves.


Which wave is most profitable and easy to trade?   


Wave 3 is where we make money. Our strategy puts us right into the impulse waves, where the money is made.


Hypothetically, this is how Elliott Wave looks like.



Within each Impulse wave there are 5 waves.  of which wave 1,3,5,  are again impulse waves whereas wave 2 and 4 are corrective waves.

An impulse wave consists of sequence of 5 waves starting from 1 up 2 down 3 up and 4 down an…

Count Elliott Wave in 10 Sec

Example of Setup 1 and Setup 2. In the Chart below the blue arrow that point to the Red Dot is the spot which we Call Setup 1. The next AIMS/Fractal Level immediately after it broke down is what we call Setup 2. At the Red Dot alligator was sleeping. While at the second break Alligator mouth was open to the downside. 
Updated 11:00 BST

How to Trade Wave 3 Make HUGE PROFITS

The most important thing I learned few years ago was that the market was a wave. Well not the market, but the charts that we look at. It always moves in waves. Someone actually named them after themselves but we don't really need that lovely name (Elliott Wave). Because we don't need to complicate things.

When I talk about waves, I don't mean the popular Elliott Wave. I mean the WAVE we have on the most beautiful indicator called, ahem it has many names, AO, The Awesome Oscillator, The eWave, AIMS Wave etc.  It helps us see the market in a smooth wave going above and below a certain Zero Line. .. It helps you ignore the going up and going down of the price concept. For us technical traders, we don't have an up and down as such specially in forex. All we see is eWave turning Red or Green.

Assuming you already know a bit about the wave. I know most of you will want to know the answer this fantastic question. How to trade the third wave?

They all ask that question, and s…