Situational awareness or situation awareness (SA) is the perception of environmental elements with respect to time or space, the comprehension of their meaning, and the projection of their status after some variable has changed, such as time, or some other variable, such as a predetermined event. It is also a field of study concerned with understanding of the environment critical to decision-makers in complex, dynamic areas from aviation, air traffic control, ship navigation, power plant operations, military command and control, and emergency services such as fire fighting and policing; to more ordinary but nevertheless complex tasks such as driving an automobile or riding a bicycle.
Situation awareness involves being aware of what is happening in the vicinity, in order to understand how information, events, and one's own actions will impact goals and objectives, both immediately and in the near future. One with an adept sense of situation awareness generally has a high degree of knowledge with respect to inputs and outputs of a system, i.e. an innate "feel" for situations, people, and events that play out due to variables the subject can control. Lacking or inadequate situation awareness has been identified as one of the primary factors in accidents attributed to human error. Thus, situation awareness is especially important in work domains where the information flow can be quite high and poor decisions may lead to serious consequences (e.g., piloting an airplane, functioning as a soldier, or treating critically ill or injured patients).
Same SA logic is applicable in the market. If you are aware of the market conditions you will play the market accordingly and change or shift your tactics. What if you cold predict what is about to take place in the market and be one step ahead of the situation and position yourself accordingly.