{"product_id":"stcov243unma","title":"Stocks \u0026 Commodities V. 24:3 (30-37): Understanding Market Structure by Paolo Pezzutti","description":"Stocks \u0026amp; Commodities V. 24:3 (30-37): Understanding Market Structure by Paolo Pezzutti\u003cbr\u003e\u003cbr\u003eUnderstanding the market before placing your trade can make a huge difference to your trading performance.\u003cbr\u003e\u003cbr\u003eDifferent financial markets have different behaviors.\nThis is because of the intrinsic characteristics of these markets (growth\/value stock, for example), market liquidity, participants (long-\/short-term investors, institutions, daytraders, and position traders), and\nfactors that affect the markets when market players elaborate information. You can make your system\/method work under the technical conditions\nthat best fit the logic of the market if you understand the market structure. Ideally, you want to let your system\/family of systems work only in environments\nthat maximize their performance. For example, running a short-term system on a market with a low daily range\nwould probably not be profitable after commissions and slippage.\u003cbr\u003e\u003cbr\u003eTHE STATES OF THE MARKET\u003cbr\u003e\u003cbr\u003eThe first step is to identify the state of the market so that you trade only when specific conditions are met. You can do that by applying a filter, but before you do so, lets try to conceptualize the subject. The main components of price movement are directionality and volatility. Volatility can be defined as a measure of an assets tendency to move up and down in price over the latest n periods. Directionality can be defined as a measure of an assets tendency to move along a defined trend. By combining these elements, you can come up with four market states...","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133911888241,"sku":"\\V24\\C03\\045PEZZ.pdf","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_1ec2315b-ecb8-48d2-80b4-10e67c569f34.jpg?v=1739656725","url":"https:\/\/shop.traders.com\/products\/stcov243unma","provider":"Stocks \u0026 Commodities","version":"1.0","type":"link"}