All language subtitles for 4. Choppy Market (Transcribed on 06-Oct-2023 00-49-16)

Chope market. A chopi market or indecisive market is categorized by price moving up down and all around but with no visible rhythm.

So if you cannot identify if the market is in a sideways market or trending market, that means the market is in chopi environment.

So in a chopi market condition, it is really hard to find trading opportunities because the market doesn't give you any clear direction.

So it is advisable to stay away from this kind of environment and get back when you see a clear direction.

Alright, so let's have an example. So British pound daily time frame. So from the left side of our chart, we can see that price may be lower low and then lower high and then lower low.

So at this point, we can assume that probably we are going to move to the downside. Right. But the market may be new high and then a higher low and then a higher.

So at this point, we might be thinking that the price is going up right because we can see a series of higher highs and higher lows.

But then price may be lower high and then a lower low. Right. So at this point, the market is really indecisive.

Okay, and we should stay away from this currency pair. Okay, because it's really hard to find good trading setup.

Alright.

Another example, Swiss franc japan is a tower time frame. So we have a lower low, lower high, lower low.

So we can assume from from from here, right at this point that possible we create a lower high and then lower low.

Right and move to the downside. But suddenly price breaks through this previous lower high and may they knew high.

And then made a lower low and then lower high and then lower low. So at this point, so at this point in time, you might be thinking that the price can still continue to go down. Right.

Because we have a series of lower lows and lower highs. Okay. But what what the market did was create a new high, a higher high and then a higher low and then a higher high.

Okay, and then suddenly price move to the downside aggressively to create a lower low.

So as you can see, we really don't have a clear direction. Right. So this this currency pair is in choppy market condition.

So what we have to do is to leave this currency pair for a while and find other trading opportunities in other currency pairs. All right.