Recently the market has experienced an extended period of low volatility, which has made it just as important to know when not trade as when to trade.
During the low volatility whipsaw market condition, prices can runs stops but does not continue on meaningfully; market breaks out to take out the highs and then turns around and takes out the lows; market will continually test a small range.
That kind of price action doesn’t fit with traders’ thinking:
- “The risk/reward is ok, I’ll take a shot”
- “I am risking 1 to make 3”
After a number of attempts the traders spirit is completely exhausted. They eat the losses and accept defeat just as the opportunity walks by. We want to delay action till the optimal entry presents itself. We want to show up at the right place at the right time.
If you understand what is described here, we’re please to say that a new application of AbleTrend Sweet Spot Alert can help, right away. Here’s an example:
Recommended Sweet Spots for Buy Positions (SSb)
- After a buy signal (large blue dot);
- After market has tested support levels (small blue dots below the bars);
- Emerging blue bar or green bar closed high;
- Buy at Sweet Spots.
Preserve the spirit and energy for the right time
Inspiration for today’s post stems from some ancient wisdom. There is a Chinese saying, ‘Yi Gu Zuo Qi”, which roughly translates to “The First Drum Roll to Rouse the Spirit”. The story of how this ancient battle was won sheds light on how traders can similarly be worn down by market noise & made to be easily defeated.
May this ancient wisdom along it’s modern applications for the market be the blessing for your trading success.
With Warm Regards,
Grace Wang
AbleSys Corp.