How do I identify a flat market?

[BullFXtrade1]

I know it’s a stupid question. but I wonder if it could be the problem I have when I trade. That I trade in a flat market. In the last MK blog summary you mentioned that last week’s gold was flat and you did not trade but I did and that was not so good.

[FractalFreak]

Hi BullFX,

no stupid questions; a flat market happens if:

– there are DM long positions above the price and DM short positions below (see y-axis)
– the market is “empty”, so both squeeze lines are low, low DM flow
– often, the price is within the middle part of the H4 channel
– the market has taken MTS / OTS / LTS a few days before, but that kicked a lot of DM out.

Does that make sense?
D

[BullFXtrade1]

Hi, yes it makes a lot of sense. It is a little more to consider then I been doing.

[Author]

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