3 types of the market you should be aware of in the forex market structure

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Market structure ,will simply tell you how the market is moving, or the study of the market behaviour.

It also tells you who is the control of the market whether it the buyers or the sellers,

how are big guys doing,how are banks and big financial instutions doing or intend to do,

also we as the retailers we are able to know when we should enter the market and exit and when also when to stay away,

so let get in and let be always active by using our eyes on what is happening on the charts.

Through the price action analysis in the market we will experience ;

number 1: Trending Market

number 2: Ranging Market

number 3: Choppy Markets

Trending Markets

I know probably you have heard of traders saying the market is in a bullish mode or maybe it in a bearish mode.

this type of market structure fall under trending markets, they are two types of trending markets in any financial markets may it be stocks,indices,currencies, etc namely

  • An uptrend market
  • Downtrend market

uptrend market

An uptrend market is what now we prefer as bullish market or the market is moving up, going up whatever

this kind of market is easy locate by the use of one the senses that is the sight,by justing opening your charts you will just this market is just moving up.

In this market structure you find higher highs and higher lows for it to be in an uptrend

downtrend market

This is also what now is referred to us the bullish market.

This is the market by just checking your charts and also using on of your sense (sight) you will see the market going down like the rift valleys huhuh is that simple.

To validate this market as a downtrend you must find series of lower low and lower highs.

N.B Before you enter any of these markets you must know how to predict the beginning of an impulse move in a trending market and so you must master the skill of drawing support and resistance ,

but as per now we must be focused to identify the trending markets.

Ranging Markets

When the market is making a series of higher highs ,we can say that the market is trending up or it going up, But when its stops making this consecutive peaks we say that market is ranging.

To validate that this chart as we said we use our sight sense it’s a ranging market it must obey our support and resistance thus it must move in an horizontal form between the support and resistance lines.

The difference between a trending market and a ranging market is that trending market has no equilibrium

it keep moving in one side that is buyers maybe in control or the sellers while the ranging market creates an equilibrium where the sellers and buyers are pushing up and down in between the support and resistance.

Choppy Markets

When you trading ranging markets ,always make sure that the market is worth trading, if you feel like you can`t identify the boundaries (support and resistance)

This is a clear indication of a choppy market.

Choppy markets are those which have no clear directions, when you open your charts ,and you find a lot of noise ,

you can`t even decide if the market is ranging or trending.

how to identify whether the market is choppy

To identify whether the market is choppy is just by zooming out on your daily charts .

In this daily time frame you will be able to identify if the market is ranging or it`s choppy.

conclusion

consinder trading trending markets, ranging markets to choppy markets…..you might ask why>>>>

choppy markets don`t really respect support and resistance to some extent which makes it very unreliable as you can`t use price action or even an indicator.

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