One of the keys to life is BALANCE.
St. Paul admonished people to practice “moderation in all things.”
Buddha’s teachings are summarized in the “middle way.” In his time people were seeking fulfillment through either extravagant hedonism on the one hand, or extreme asceticism on the other. He rejected both extremes.
Even when it comes to our health, we’re advised to have a “balanced” diet.
Balance is definitely a critically important key to healthy living: spiritually, mentally and physically.
But when it comes to trading … the market at a balanced position is the very worst place to trade.
The Value Area “Point of Control,” price oscillating above and below the 50 MA. These are examples of a well-adjusted, balanced market … and they are low probability trading opportunities.
The best opportunities come when the market is “off balance,” when it is not trading close to the mean.
When the market is in balance, it isn’t moving directionally.
Look for opportunities to trade “from the edge.” Off-balance markets provide superior risk/reward scenarios.