How to Trade Expanding Markets - A Professional Approach.

XAUUSD

When Market creates expanding pivot formations and when we don't know who the Market player is going to be, And if you open a Trade without proper Trading framework, there are good many chances to trigger a Stop Loss rendering your Trade a failure. In such cases, what should be the right approach towards such Markets?

Step 1: Identify who the Major Market player if going to be by identifying a trend, or specific Market geometry using Econophysics, Trend lines etc.

Step 2:

If Price reaches back any specific area of interest kike Supply/Demand Zones, Fibonacci Levels, Specific Market angles, Channels, Pitchforks etc. look out for Price action along that line/zone.

Step 3:

If Price action responds to that line/zone and shows any positive signature like bullish/bearish engulfing, doji candles etc. in the direction of Major Market player, Only then it is advised to open a Trade in the direction of the Major Player. Until then, it is advisable to wait and watch.

Alternate Approach:

The other approach to enter such Markets is by following the foot prints of Market Manipulators. They will surely leave behind certain Price Signature before making a move. As a Professional Trader, we need to identify such Price Signatures like sudden increased volatility, organized behavior of candles, candles with larger wicks etc. and then open a trade in the direction of Market Manipulators. If you are randomly opening a Trade in such expanding market structure without any context or framework, you are getting away from the job of analyzing carefully, which is not a good practice for long term sustainability as a Trader.

So, the idea summarizes as follows..
1. Identify who the Major Market Player
2. Identify the zone/level from which Price takes off in the direction of the identified major market player
3. Enter the trade with proper Risk Management framework.

Thanks for taking your time to read these market insights. Wishing you All the Best.