Ranging day,Is it better to stay on the side-lines?
5 min Nasdaq Emini 100
Hi,
Market has been ranging since yesterday.. minimum price movements with zig-zag price actions and no clear trend although there is an upward bias in the moving averages....
It is better in this case to stay out of the market... Y? jsut take a look at the so-called possible entry points that I circled in orange. Although it is very clear that price bounces whenever it touches the blue moving average,
ask youself: "Can I really justify the risk/ reward?
Am I being too greedy and wishful that the trade will go my way?
What is the probability of success for such a scenario?"
These are questions that have to come second-nature to you. You can see that Short-term MACD has very dirty movements and Mid-term MACD is hovering near zero line which is really indicative that price movements are bad.. and that it is really a ranging day.. Do the right thing, Stay on the sidelines.