Q0 374b0 37460 37440 37420 37400 37380 37360

The next bar gave more evidence of a non-trending market by dipping lower, and then reversing the direction of the previous bar.

As stated earlier, it is essential to know and recognize when a market is in congestion. When it is, I don't want to be in it. Such a market belongs to the floor traders, not to me. They love when a market goes sideways. They can safely scalp to their hearts' content. I cannot compete with them, because I can never match the speed with which they can react to the action on the floor and place their orders. The markets they hate - trending markets - are where I make my money. There's a piece of the market for everyone, according to their trading style. When a lion kills a zebra, he eats the organs. Then the vultures come, and they tear at the flesh. When the hyenas come, they eat the bones. The ants and beetles get what's left. There's something for each of them. So it is with the markets.

Further confirmation of a non-trending market came with the doji bar that materialized next. The market was now in congestion by every definition I could think of.

When a market goes into a congestion, I will not trade it until I can define and count a new trend.

I went ahead and did my thing. I started a count. If the market was going to go anywhere, sooner or later I would catch up with it.

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