Professional trading what is it. 4 Steps For Building A Professional Trading Strategy
You might say that this is too theoretical and real charts look differently, but I disagree. Just take a look at the chart below and you can see how the market follows the exact same rhythm.
With a little bit of knowledge about market selection, you can find such phases all the time. Step 2: Pick your indicators and tools A big mistake many traders make is that they pick one or two indicators or tools and then try to apply them to their charts all the time, regardless of which market phase is present.
It is important to understand that each indicator and tool is designed for a very specific situation. For example, a moving average is best used during trends and if fails during consolidations; oscillating indicators are used during ranges and not during trends; momentum indicators can be used during trends and reversals but fail during consolidations and pullbacks.
Once you are clear which type of trader you want to be and which market phase, professional trading what is it want to specialize in, you can pick your tools. I, for example, almost exclusively trade tops and breakouts click here to learn my strategy.
I will skip all other market phases and I do not try to use my indicators and tools in any other way. You need to specialize if you want to trade successfully and you have to pick the right indicators and tools for your chosen field.