Today we will discuss trending markets and non-directional markets
Trending markets are like T20, full of thrill and fun. Non-directional markets like Test match cricket, are mostly boring.
By now you already know how to find a trending market and a non-directional market
Answer: look at the slope of the moving average. if it is parallel to the x-axis it is a non-directional market.
If the market is non-directional — a normal buy and sell strategy will not work out and your positions will go into a loss. You need to check the underlying trend before making the buying and selling decision.
Only if the markets are trending, buying or selling is advisable. To make money from non-directional markets — the best way is to learn option trading strategies like short iron condor and short iron butterfly.
Trending markets will have a positive or negative slope for the moving average. So the next time you trade, check the trend, check the slope and then time your buy and sell.
