Figuring out what kind of direction we are in the market is very important to become a successful trader. In my past years I would trade against the trend. Remember the trend is your friend. If you can follow this simply rule you will have much higher probable winning trades. Now that is much easier said than done. For example the last few weeks on the AUD/USD we have been going sideways. Trying to trade this using trends wouldn't work. In the chart you will find we are bouncing between 1.08167 and 1.06450. After you decide what kinda of market we are in you can beginning applying the best system suited for that market. I have several methods to trade the different types of markets. Remember like a handyman you need to learn what the market is doing and then use the correct tools to decipher the market. You would never use a hammer on glass would you? Most new traders try to fit their tools onto the market to see which one fits and have no idea what they are using. The master trader rather use their knowledge and experience and decides which tool is the best. They have mastered their trading tools.
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