'Trading is a process of observing the market's action until such a time you can find and form trading ideas and get involved.'**

Wednesday, May 30, 2012

Analyzing How To Make Trade In A Choppy Market

Today's market marred by lots of chops and the only possible trade I can spot is the one I encircled.

But spotting it takes a lot of deep market reading and patience in watching the market.

By analyzing today's market, I can spot a quick trade "in-between" this choppy sideways move.

Notice I made a three horizontal lines showing the maximum low and high of the trading day.

And when it breaks the mid-range (lower arrow), we can enter a long trade with stop just below or in-between the two lower horizontal lines.

The exit is at the upper arrow by just projecting the equal distance from the middle line.

By watching the market keenly and analyzing the market from technical view, you can still spot a simple trade in a choppy market, like this one.