Recognize the distinction between ranging and trending markets: 10 Habits of Exceptionally Successful Traders (Part 3) Look at the above chart. Is there a trend or a trading range in the market? Isn’t it an upward trend? How can we be certain that the trend is upward? Higher highs and lows are being experienced by the market. Go back to the beginning of it. When did it start to gain popularity? The market made a slightly higher low in the lower left section of the chart before rising above a recent high. This marked the beginning of the trend. This is theideal time to enter themarket in thedirection of the
Lower lows, lower highs, higher lows, and higher highs. Every bar has a high and a low. The market makes higher highs and higher lows as it rises. It creates lower highs and lows when it declines. Technically speaking, it is frequently preferable to examine highs and lows from a slightly broader perspective rather than focusing only on a single time period or chart bar. Fractals are one method for doing this. Three bars with three highs and three lows make up a fractal. A market experiences higher fractal highs and higher fractal lows when it is rising. As it descends, it creates lower fractallows and lower fractal