Volatility is a friend or foe.
When world events create sensational headlines , the global pools of massive capital really get fever pitched , turning on their computer bots and creating what may appear trade currents impossible for a regular retail trader to navigate.
Indeed trading the lower time frames in times of high volatility is not advisable for new traders. Wefind that our (demand supply ) zone process works quite remarkably well when knowing a confirmed directional bias and order imbalance in the monthly time frames.
The trading process beginning from the monthly time frame and making a decision on price direction based on a simple line chart makes confident the remaining steps of our ES algorithm.
Consider the simplicity of two steps each easily applied to each of 4 Time frames. As you reduce time you also reduce range until range is often equivalent to the 5 day ATR . Locate a solid price action candle pattern from even M1 and we find our traders have the confidence to stay with trades even when the zones are consumed .
When “knowing” these zones as well as when order imbalance exists , you can buy all the way up as the whales do andsell all the way down as they do.
Recall you must understand what a candle chart reveals. Forex trading with volatility requires you remember that a candle chart is a representation of closed orders.
They are of little value as past history is not nearly as important as present circumstance .
Think this way… Which would you rather know if you were a sniper ?
“Where your target was 1 day earlier or where your target is now and where he is moving “
Focus on what you see now and not what you saw. What you focus on needs to be the now not the past or the future.
Forex trading with volatity creates a very helpful trading environment as long as you avoid looking back and making futile future predictions.
