Trade Journal 16/11/17
As I stood on the sideline watching the market, I came up with several interpretations on why prices consolidated longer than I expected, the best two reasons I can come up with is.
Firstly, I’d say that combining all the recent information about the Australian economy; there was no bullish economic data that could validate on moving it upwards.
Secondly, the market and trader’s view were synced on the price and therefore, price remains steady, and the reaction wasn’t an overreaction.
I stayed on the sideline and did not get involved, however, if I was going to trade this type of market situation, I’ll use price action, my technical range analysis, support/resistance and candlestick patterns.
Also, I should never try to predict the market and just focus solely on understanding the market.
Therefore, not every time a price moves dramatically does it mean a market overreacted plus being patient and seeing how the market is going to react, can be a viable strategy.
After watching a market correction now, it’ll make sense because the market participants will involve New York and London session increasing volatility. During the other times, there wasn’t much market participants.