Market Context
This is the most important foundation of my trading:
@Trader_XO was the first person to bring this to my attention and to this day his teachings still have a tremendous impact on my trading / process.
Market context should be one of the foundations of your trading. It helps you identify which trades you should be focusing on, from a more directional point of view.
Patterns don’t mean shit unless you are trading them in the right context, this goes for double tops / bottoms and even compression setups.
The daily / weekly 12/25 EMAs (TraderXO Macro Trend Scanner) is one of the simplest yet most efficient way to ensure your always on the right side of the trade.
In an uptrend, the daily bands will be green and price comfortably above. In a downtrend, the daily bands will be red, and they will act as resistance when price trades into them from the underside. In rotational (Range) environments you will see the daily bands more frequently cross both bullish & bearish.
My favourite tip for identifying a rangebound environment after an uptrend, is when we have the first bearish cross on the bands. Vis versa, in a downtrend you can wait for the first bullish cross to anticipate a rotational environment.
I urge you all to implement market context into your trading process and have clear rules defining how you identify each environment.
Most traders lose because they have no process.
They chase setups, revenge trade, and wonder why they keep blowing accounts.
Here's the exact system that finally made me consistent:
🧵: The 6-phase trading process that transformed my trading. 👇👇
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@ParadiseXBT_ Thank for sharing. I'm still a beginner, but there are so many systems, strategies & indicators. I tend to throw everything in de mix which results in chaos as well. Good reminder to, especially in the beginnig, to stick to a one plan & keep it simple!
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