Slow market? This is exactly how you need to trade it

In the last couple of days the market has been very very slow. If you try to find trend trades you are going to get burned…

The thing is, as always, you need to adapt to the market conditions.

The key is to find currency pairs (or any other instrument) with a clear range. Once you find it, pay special attention to the the market reacts at both extremes of the range.

If you see either: upward pressure (around the bottom of the range) or downward pressure (around the top of the range) try to trade it!

What do I mean by upward or downward pressure?

Let me show you and example…

This is the USDJPY hourly chart:

I want you to focus on both green rectangles.

On the first rectangle we got upward pressure, which means that the market doesn’t want to continue its way down. Sellers tried hard (making a large candlestick) to make the market reach lower levels, but at some point bulls took control over the market, pushing it back up even harder.

That’s what I call upward pressure.

Now, if we get something similar on the last rectangle, I’ll definitely go long. We could get the same pattern on one or two candlesticks, even three candlesticks.

What if the it continues its way down… that is, if it breaks the bottom of the range?

Well, again… you adapt, you can even take that breakout. SO maybe setting a pending order once it breaks through the bottom of the range is plausible. But we’ll talk about breakouts on another article…

And that’s my trading plan for the USDJPY.

I dont want the market to do “something”, I just adapt, if it keeps trading inside the range, I range trade, if it breaks through the bottom of the range, I take that breakout…

You see the beauty of this way to trade? You don’t expect anything to happen, what ever happens you adapt. You stop fighting the market.

It’s a very simple way of trading, yet very effective.

Let me know what you think about this strategy.

So, what have you been trading in the last couple of days?

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Raul Lopez

I've been trading the markets for more than 15 years. I believe the best way to trade is by adapting to the market conditions. You can learn it too, join our community .

  • Sylvester

    I quite agree with you but may I know what period we are talking about here?

    • Raul Lopez

      That’s the hourly chart…

    • Sylvester

      Ok. I’ll try watch it. Give you feedback on whatever I scoop out and can we check it out on 4hrs if it’ll be the same? What do you think?

      • Raul Lopez

        4H charts look bearish…

        • Sylvester

          Definitely! Following last week’s bears

          • Raul Lopez

            Yep, there is also a short term range developing… which might give us an opportunity to take a new short… We’ll see…

  • Maryna Murray

    Hi Raul, I think this pair can remain in the range right till July/Aug as happens just about every year when it’s summer in Northern Hemisphere.

    • Raul Lopez

      Yeah, I have the same feeling… Right now I’m just waiting for the upward pressure to develop and I’ll trade it!

    • dan

      sods law

      • Raul Lopez

        Hope for the best… expect the worst.