TradersCALM - Market Path (Fade the Market)
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By number, the majority of traders first do an analysis of the previous path of the market to get a good entry signal, and then trade in the direction of the market.

This is often true whether they trade stocks, commodities, currencies, forwards, futures or options.     Some, not all, option traders go on trade not the direction of the market, but the direction of implied volatility.

So, if most traders analyse market path to give them an entry signal, how do you trade market path rather than market direction?     The easiest way to answer this is to perhaps to distinguish the two types of trading concepts using the following criteria:

   
•   service,                                    •   open trade count,

   
•   directional preference,            •   focus on entry and exit,

   
•   time targets,                             •   position size,

   
•   profit targets.
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