Part 6 - Type of market conditions

There are various market conditions that occur through out the day that your system will have to deal with.

1. A trending market
2. An oscillating market
3. A range bound market
   
   A trending market is one, which has 2 conditions. The market is going up , the market is going down. See the example below

An oscillating market is one which is not making new highs or lows to any great extent, more it is ‘oscillating up and down in large wave like formations See the example below.

A range bound market is one which is stuck in a small range of just a few points, it seems to just meander up and down without any force or momentum. See the example below

No one system can deal with all these conditions. A trending system will fail when the market moves into an oscillating mode. An oscillating system will lose when the market moves into a trending mode. Both will suffer in a range bound mode.