Flat Market Sessions: Key Signals 11 June 2024
The market displayed a lack of strong direction for the past two trading days, echoing the flat sessions witnessed in the last two weeks of May. However, this sideways movement didn't prevent us from identifying profitable trading opportunities.
As shown in chart, the market provided a clear bullish indication at point 1. This prompted us to enter a long position (buying) around 23,500. We then exited profitably at 23,314, securing a gain of approximately 22%.
Point 3: Profiting from a Reversal Pattern
At point 3, the chart showed a pattern that often means the market will switch directions. We took advantage of this by buying something called a "put option" and made roughly 29.57% profit when the market did change!
Why We Didn't Trade at Points 2 & 4
Point 2 presented a reversal pattern as well. However, unlike point 3, the price movement lacked a decisive follow-through. The market entered a consolidation phase, characterized by minimal price swings. This lack of clear direction led us to rightfully abstain from taking a trade.
Point 4 looked like another switch, and the market did go down. But remember, we already sold our previous trade (from point 3). This is why it's important to follow your trading plan and not get back in too soon, even if the market seems to be moving again.
Conclusion
This analysis demonstrates the value of selective trade execution, even in a seemingly inactive market. By focusing on high-quality signals and practicing discipline, we were able to generate profits despite the overall flat market conditions. Remember, a well-defined trading strategy that emphasizes risk management is crucial for navigating any market environment.
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