It’s not just that the market is not moving so points are hard to come by, it is also that the levels are close together – usuallz within 10 to 15pts of each other which makes trading with 10pt stops very difficult.
In the last week, it’s fallen by another 4% and on 30 April stands at 98.
So how should I handle this situation? The first point is that I have to trade with the opposiy mindset: instead of looking for breaks, I need to buy and sell value, which means KLs that are far away from the mean, as in this situation the market will take that path of least resistance which means reverting to the mean.
I have developed a new setup to deal with this PA, the Choppy-Trade-Extremes setup.
