Stock / Market (here on commonly called “Market”) has 2 types of scenarios at any time:
- Trending
- Non-trending
Knowingly or unknowingly, every trade has preference for trading in either trending market or non-trending market depending on type of trading strategy that he/she loves most. For example, those who love to write options using non-directonal strategies or prefer writer’s hedged trading love non-trending markets.
Others who trade in equities, futures, option buyers, scalpers/jobbers prefer to trade during trending market.
Good news is that the SBER SMI help you pre-identify levels for trending or non-trending market but also provide you textual information of price action analysis.
It is important for a trader to know and understand his/her style of trading because most profit can be generated knowing the same.