One of the aspects that’s at the very heart of what I try to show traders

[Tobi]

One of the aspects that’s at the very heart of what I try to show traders is that they need to assess context in order to find success. Context is something which many find elusive. However, it need not be.

Simply trying to recognize whether the market is balanced or trending and where the critical price levels are can be enough to tip the trading odds in your favor. But on its own context isn’t quite enough and this is because the markets don’t have to do what you expect them to, when you expect them to do it.

So it’s vital that after you’ve identified the context, you have a range of scenarios and are adaptable to market activity as the auction unfolds.

 

[gwolf666]

That’s a very accurate and insightful observation about trading. Understanding market context truly separates consistent traders from impulsive ones. Many focus solely on patterns or indicators, but fail to interpret why the market is behaving the way it is.
Recognizing whether the market is balanced (ranging) or trending gives you the framework for your strategy — for example, fading extremes in a balanced market versus riding momentum in a trending one. However, as you said, context alone doesn’t guarantee profits, because markets are driven by countless variables and can shift unexpectedly.
That’s why adaptability is key. Once you’ve identified the current context, you should have multiple scenarios in mind — like, “If price breaks this level, I’ll look for continuation,” or “If volume fades here, I’ll expect a reversal.” The traders who survive and thrive are the ones who adjust quickly as new information emerges, rather than clinging stubbornly to one bias.

 

[kit_hung]

You have a strong point here bro. Context is like a trader’s map—if you know if the market is balanced or trending, you’re already ahead of the game. But it’s also important to accept that the market doesn’t necessarily follow your path. Even with a clear context, surprises still come.

Now this is where flexibility comes in. Don’t just stick with one idea and wait for it to happen. Have different scenarios and be willing to change depending on how the market plays out. That’s what separates the average trader from the pro. Context is the foundation but adaptability is what builds the house.