How do you know when the market is exhausted? It can go only go so far before it exhausts itself. The market is like a car running on a gas tank. Next… Intraday trading: How to tell when the market is exhausted Once you know, then you can use the appropriate intraday trading strategies for it. Now, you see an equity curve that’s heading lower.Ĭlearly, AUD/CAD is a mean reverting market as it loses money when a Trend Following approach is traded on it.Īs an intraday trader, it’s important to know whether the markets you trade has a trending or mean-reverting behaviour. This tells you GBP/USD is a trending market as it makes money when a Trend Following approach is traded on it.ĪUD/CAD: Equity curve making new lows when a Trend Following approach is traded on it. ![]() ![]() You see an equity curve that’s moving higher. GBP/USD: Equity curve in an uptrend when a Trend Following approach is traded on it. Now, I’ve applied this strategy to a portfolio of markets.Īnd here are the results of two markets that proves my point… Hold the short position till the price breaks above the previous day high, and go long.Hold the long position till the price hits the previous day low, and go short.I applied a simple Trend Following strategy to different markets (credits to Andrea Unger for sharing it in Trading Mentors). In fact, some markets trend better than others-this affects your day trading strategies. If you’ve read Technical Analysis books, most tell you the market trends 30% of the time.īut recently, I’ve discovered it’s not entirely true. Then let’s begin! Not all markets are the same. ![]() (These are the stuff winners pay attention to that losers ignore). You’ve got to make quick decisions, work under pressure, and take the heat .īecause in today’s post, you’ll discover my 7 best intraday trading tips I’ve learned back as a prop trader.
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