Saturday, August 15, 2015

What does a Happy Market look like?


Do you know what a Happy Market looks like? Most traders assume that a Happy Market looks like this: But you would be wrong. A Happy Market actually looks like this: Now notice I said the market was Happy, not you? The second chart is one that shows extreme chop, lots of whipsaws and is one that is sure to make most traders decisively unhappy, but this is an exact graphical representation of what a Happy Market looks like. How is that? Because the market is content. Price is neither going up, nor down, and is happy to remain within a relatively small trading range. What Makes a Market “Happy”? Remember that price only moves when there is an imbalance between buyers and sellers. No imbalance, no movement. If the buyers and sellers are evenly matched, price will go nowhere. This is precisely why markets tend to only trend about 20% of the time. The rest of the time they are mostly content with their pricing and Happy to remain there, until something comes along to disrupt the balanc
https://www.indicatorwarehouse.com/a-happy-market/

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