In designing a trading strategy, we will start with the big picture and dig deeper into more detailed decisions of the strategy in making decision. In the beginning, we will assess what type of market we want to trade and what kind of trader we want to be. Then, we will end up with how to decide on exits, and how we manage our money and risk by putting stops.
Pick the Market Type
The first decision you have to make is what type of market action you want to trade. Generally, there are three types of markets, they are derived from three distinct chart patterns that appear when there is a shift in market action. Each market type can be characterized by specific price activity. You should make yourselves familiar with the charts to be able to identify different market pattern.
Pick the Market Type
The first decision you have to make is what type of market action you want to trade. Generally, there are three types of markets, they are derived from three distinct chart patterns that appear when there is a shift in market action. Each market type can be characterized by specific price activity. You should make yourselves familiar with the charts to be able to identify different market pattern.
