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Low Volume Trading at All Time Highs

A question we frequently get is what should I do when price is sitting at all time highs and the volume is low? There are a few different ways to handle situations like this when day trading futures.

One of the best ways and the most unpopular ways is to simply stop trading that instrument until volume increases or price starts moving again. If the trading environment does not fit your system or trading style then there is no reason to force trades and lose your hard earned money. It can be difficult sitting on the sidelines but it is better then losing money.

The next popular option is to drop your time frame down, now we say this with caution. When dropping your time frame you will see many more signals and many of these signals could/will be false signals. Traders will need to know how to differentiate between a good signals and a bad signal.

If you have issues with FOMO or are new to trading it might be a good idea to simply observe this time frame for a few days before placing trades, remember we always want to be smart and do whats best for our capital.

When dropping your time frame you will need to know exactly what signals to be looking at. Even though all of our signals in the price action course are valid on all time frames we still want to know what signals works best for that time frame. This is when traders will need to go back and back-test that signal using one of the Gorilla Futures methods mentioned in the course.

Traders shouldn't try to reinvent the wheel when the market environment changes a bit, instead look to build a play book that slightly modifies your trading system for these types of markets.

Trading low volume markets can be difficult but if traders put in the work and back test a system specifically for these situations, it might make trading a bit easier.


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