📉 Lateral markets often lead to losses due to unpredictable price movements.
🕯️ Small candle bodies can indicate a potential lateral market.
🚫 Low trading volume suggests a lack of strong directional conviction.
⏳ It’s better to wait for a clear trend to emerge before entering a trade.
@josantrader:
“In lateral markets, that’s where the most money is lost. In fact, when I lose money, most of the time it’s when I’m trading in a lateral market, at the beginning of a lateral market, or something like that. It’s true that it’s very complicated to know when a lateral market is starting. One of the things I look at is the size of the bodies of the candles. Simplifying, the body of the candle, as I explained at the time in the graphs and such, has an important part. Those zones of highs and lows of the candles, because I normally enter on a break of a high or a low of a candle, that kind of thing, I was already explaining, and in the end, the body of the candle is also important because it’s telling us if one of the two sides has pulled to one side or not. There are many theories of market profile and types of things that in the end what they look for is a distribution of probability of prices and certain things that abound in that type of theory, that as soon as the market begins to concentrate in an area, what you have to do is buy the minimum and sell the maximum, end of the story. So whenever you see small bodies in a candle, you have to consider whether it is possible that we are starting a lateral or not.”
Watch the exact part of the video where Josan Trader talks about avoiding lateral markets here:
Watch the video on YouTube.
Read more articles by the world’s top 100 analysts on avoiding lateral markets at the following link. BLOG.
