Is the market Trending or Ranging?
* Is the Market Trending or Ranging? How to Read Price Action Like a Pro * Every beginner trader asks the same question before placing a trade: Is the market trending or ranging? The answer decides your entire strategy, risk, and probability of success. Using the wrong strategy in the wrong market condition is the single biggest reason traders lose money. Why This Question Matters Markets only do two things. They either trend or they consolidate. In a trending market, buy-the-dip or sell-the-rally strategies work. In a ranging market, those same strategies will trap you. If you try to trend-follow in a range, you will get stopped out at both ends. If you try to range-trade in a strong trend, you will be run over. What is a Trending Market? A trending market shows a clear directional bias where one side is in control. * Uptrend :* Characterized by Higher Highs (HH) and Higher Lows (HL). Price consistently holds above the 20-period Exponential Moving Average on your trading timeframe....