Intro
- This is part of a series on learning the MARKET CYCLE. Many traders contacted me asking for ways to improve this part of their price action reading.
- 90% of the time the market is sideways
- Most traders enter like its always a breakout and panic on the pullback.
- 90% traders lose. So enter and expect a pullback.
Goal
- We wish REMOVE the bad habit of hitting the button when the market moves. Statistically you are in a CHANNEL or a TRADING RANGE most of the time.
Drill Instructions
- Draw BREAKOUTS, CHANNELS and TRADING RANGES like before. See earlier drills.
- Tighten the BREAKOUTS so they DO NOT OVERLAP anything.
- Remove the channels and the trading ranges.
- Repeat until you convince yourself 90% of the time the market is NOT in a BREAKOUT.
- So just trade everything like a channel



- Repeat this drill until you are convinced 90% of the time the market is NOT in a breakout
- Its very difficult to find a BREAKOUT that cannot be part of a channel.
- Even the ones I selected below could be argued against


Conclusion
- Most traders enter like its always a breakout and panic on the pullback.
- 90% traders lose. So enter and expect a pullback.
I hope you enjoyed that drill! Please let me know in the comments if you found that valuable.







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