Determining trade zones and how to recognize non-trading environments: 11/4 NQ example (Wedge)

It is very important to RECOGNIZE MARKET ENVIRONMENT. You need to know the following:
- When and where to trade
- When not to trade
- How to trade certain trading environments: e.g. do you buy the highs or short the highs? when? why?

You need to have all of these answers before risking capital.

I apply the following saying, "Recognize, then decide."

If I recognize a good trading environment, I trade it; if I recognize a non-trading environment, I sit on the sidelines.

Here is a real time example of trade zones and trade environment on the NQ. I know exactly what I will do when and why I will do it. Currently, being in the wedge, I do NOTHING. Patience is an important skill to learn because it will a) save you money and b) make you money.

I look at price action on the NQ this morning and I recognize:
- Wedge
- No clear direction
- Indecision
- Tight range

All of this = a NON-TRADING ENVIRONMENT. It's important to not trade during this time and wait for price to go into your trade zones.