The FOREX market will trend 2-3 times a year. That's less than 30% of the time. The rest of the time it bounces around in a range.
Have you ever had a bumper month where all your signals go your way and you end up with a sterling SystemR and a Win/Loss that is the envy of all your friends?
Only then to give it all back the next month and then the following again... depressing right?
As a short term trader it's important to be real about market conditions and why price is moving to it's new fair value. Mostly, it's a fundamental reason and recently Covid has sent a shock wave through the market correcting many stock indices and putting a pulse through the FX market.
After an impressive move and a rebound to its approx 61.8% most indices, majors and oil find their new normal. So changing your mindset from trend following to corrective and consolidative mode should be done early. As I pointed out in Adjusting to Crisis, in a severe trend, divergence has little effect. And, when in corrective modes we tend to see a lot of classic TA patterns, Harmonics and price will find it's new range.
But take note: From month to month, week to week - each day is different.
Important to stay on your toes because the market will only give you the reward if you are in front, first and a leader. You, as a trader, are making the market not reacting to it. Think to yourself what is fair value, where am I in regards to the trend or range and "Profit alway favours the brave!"
