'Market and Human' Psychology perspectives with tips on how to avoid common mistakes by 
The market is consolidating ahead of the US payroll figures. What does this mean to us as a traders?
I was working with a group that I mentor and I was pointing out that the best traders have the ability to shift their styles of trading depending on what sentiment the market is in. Meaning that if the market is in a strong trend ‘Continuations are the best trades. And if the market is sideways or correcting then ‘Reversals’ are best.
As we are waiting for this big event, if you want to trade over the next 24 hours or so, then look for channels to form on the shorter term time frames; such as the 15 Minute charts, and trade the reversal. I recommend looking for Doji’s and Trwezer top/bottom candles at trend lines to pick up 25 to 50 pips per trade.
Here’s an example on the GBPUSD:
Note this channel is now well defined and presenting multiple opportunities for 50 plus pips at a time.
Developing an ability to identify current market sentiment is a little difficult to explain. However common sense of when and why the market would potentially go sideways for a period of time is the best place to start. In this case, waiting for one of the most market moving events will most often result in nice opportunities like this one.
Good trading…