Disliked{quote} Yes, if you change your market or your instrument same principles may apply.... but it wasn't the market that changed. It was you that changed. Yes, if you are under mental distress your perception of reality will change accordingly....yes but first relax and review and change your strategy but that doesn't mean the market has changed. It is the same old market. It still goes up and down and fast and slow etc.Ignored
Besides, think in the stock market, the futures markets. These have very strict regulations that define how the market and the instruments within can be traded. Regulatory changes happen, from inside the markets or defined by external organizations such as FFIEC, SEC, US FED, OTC, state regulations, etc...
These changes will sure affect the way one can trade and will many times limit how a trader can approach these markets. I mean, markets are more than prices going up or down. Obviously a market is not profitable unless price constantly change, a flat market is not tradable nor active.
But markets have more than price swings. A market may show a well defined S/R level or not. Now the ESMA has limited to 30 the leverage allowed for retail traders in Forex derivatives and banned binary option trading for retail traders as well. It means that the margin required may be up to 13 or 15 time higher than the one it was required before. It means that everyone having an edge on binary trading will have to adapt it to another asset. While binary option is time-based, Forex is spread-based; so the approach to do the same is quite different. A trader wanting to apply same principles on FX that comes from binary options has to think in terms of range instead of time. Very different strategy is required even if based upon the same principles. Binary options have ceteris paribus fixed risk in comissions while FX trading has dynamic risk because it has comission and the trader will also be dynamically charged if price moves against the position. Conversely will have an income depending on the difference between entry and exit while in binary options that will not affect the trade regarding the initial expectations.
All those dynamics must be taken into account when trading through awareness and constant analysis of markets to avoid overconfidence.
Another example. I used to trade for fun cryptos during weekends using 1-minute charts. I found two main issues, the first one is that the SR levels usually were not clear and that most of the instruments had low liquidity thus not depicting the typical price patterns due to lack of market participants. Therefore, I had to study the charts to identify high probability pattern series before I could do anything with it. Same for the SR levels, it took to me a few days of practice getting used to the new conditions.
These are just a few examples just experienced by one person (me). Now think about the tens of thousands of active traders around the globe and their own experiences, markets and different conditions.
When demoing I usually show to the attendees a monthly chart to prove that, indeed, SR levels were there since before they were even born. Round numbers were always there, anchor points were always there, trendlines were always there. This is only the price structure of a market, but a market is more than price and this is what we say when we say market changes.
In my humble opinion, of course.
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