9/19/07

Is it a TREND or a TRADING RANGE?

Can you tell a trend from a trading range?

Trading ranges don't have a neat picture of higher highs and higher lows, or lower highs and lower lows. They are rather a price tops/bottoms randomness, where it is very difficult to focus and choose a market direction, not to mention make any trading decision.

That's how a trading range looks like:

So, what do you think? What's easier: trading with a TREND or trading in a TRADING RANGE? I bet you know the right answer. And if so, you should be clear out of trade when you spot a "mess" on the chart. Remember that when you not trade you are actually also making a decision and it is to preserve your capital and not take a risk.

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