Trading During a Choppy Market
Order flow doesn't make a choppy market easy to trade.
In a sideways market, buying pressure may briefly push price higher before sellers return. Selling pressure may do the opposite.
This can create repeated failed breakouts and conflicting signals.
Before taking a trade, I want to understand whether the market is trending or rotating within a range.
In a range, the edges and the middle can present very different risk-reward conditions. In a trend, fading every move can be dangerous.
I also accept that some market conditions may not suit my strategy.
Knowing when not to trade is an important part of risk management, especially when every small movement looks like a potential opportunity.