Evaluating What Market Condition Your In?
What I am looking for is just some ideas or personal preferences people have on evaluating what current market condition they are in. Mainly, I would like to see how people realize when they have entered a consolidating market and when they are finally out of a consolidating market.
Theres a pattern I see a lot that I call the "swallow" or exhaust moves pattern where you have a higher high and a lower low on the same wave. THis ultimately will throw me off on knowing which market I am dealing with as it could mean the start of a up/down trend or could range between the prior higher high and lower low.
Anyways, I would like anyones ideas or techniques if you want to share.
I think wedge patterns are helpful to determine a breakout from range bound trading...only problem is that what constitutes a support or resistance line of the wedge is subjective; what you might think of the top or bottom of the wedge might be different than what another trader thinks it is
© Forex Factory