How to Identify Flat Market

Hi guys,

I know there are many ways to determine flat/ranging market. Let's share them all here. I've found one interesting post made by Igorad on other forum.

A litlle trick that could help you with your problem:

the average daily range over the last 5 days on eur/usd 90, on usd/chf 98 and on gbp/usd 128.

the average daily range over the last 20 days on eur/usd 115, usd/chf 128 and on gbp/usd 173. So that makes that the average daily range on the short term, is nearly 1/3 less.

Stand on the sideline till you see that the average daily range over the last 3 days is bigger then the average daily range over the last 20 days.

 

You wan't die of not trading for a few days. You will think that you will not make any money, but you deffently will not lose any money (wich is more lickely in narrow ranges).

It takes also discipline NOT to trade.

 

regards...iGoR

Regards,

Re: How to Identify Flat Market

so... we should not trade if the market is flat? 90 pips per day is quite big, no?

Re: How to Identify Flat Market

so... we should not trade if the market is flat? 90 pips per day is quite big, no?

That depends on your trading style and system.

I myself do not like it when a pair only make 90 pips a day for the high-low. My trading system is not working well with those days.

The comment from igor is taken from a discussion of a trading system where the average pips per transaction is around 200 pips. The max so far i've seen for that trading system is 500 pips. :P

Well, if you are aiming for 20 pips, a 90-pip-day would be very2 nice. So it all depends back to you.

Regards,

Re: How to Identify Flat Market

500 pips per transaction!!! :twisted: :twisted:

I was about to boast my 200 pips gain this morning :"> :D

Re: How to Identify Flat Market

Hehahaha don't be intimidated my friend.

500 pips in 1 lot and 1 transaction is indeed a fantastic result. However, it could only be gained in several days. If i'm not mistaken it took 3 days. For 1 day result, that trading system could only get around 200 pips using 2 or 3 lots. So, 1 day result for 1 lot is an average of 66 pips.

So, don't sweat it pal.

You could get 200 pips. That's awesome! Boast it here!

In fact, I'm always interested by trading system that could gain 50+ pips in profit for 1 lot / transaction.

I also bet many people are curious enough for your 200 pips profit.

Regards,

Re: How to Identify Flat Market

Hehahaha don't be intimidated my friend.

 

500 pips in 1 lot and 1 transaction is indeed a fantastic result. However, it could only be gained in several days. If i'm not mistaken it took 3 days. For 1 day result, that trading system could only get around 200 pips using 2 or 3 lots. So, 1 day result for 1 lot is an average of 66 pips.

 

So, don't sweat it pal.

 

You could get 200 pips. That's awesome! Boast it here!

 

In fact, I'm always interested by trading system that could gain 50+ pips in profit for 1 lot / transaction.

 

I also bet many people are curious enough for your 200 pips profit.

 

Regards,

Hi William.

What was your risk for the 500 pip trade?

Usually, the bigger the reward, the greater the risk. But... of course that depends on your style & what timeframe you trade (and the size of your account and how much drawdown you can withstand, no?).

Good to hear you are having success.

:peace:

Re: How to Identify Flat Market

Hi William.

 

What was your risk for the 500 pip trade?

It was a one time jackpot :D

At the end of 2008 I get around 350 - 400 pips per transaction per day with only 35 pips hard stop loss. Amazing huh :D

I'm using Nina's system. But it doesn't get so good with a ranging market these days starting 2009.

Regards,

Re: How to Identify Flat Market

Hi William,

Interesting discussion on flat/ranging market.

1. Is there any EA or indicator to show the last 5 day average daily range

and the last 20 average daily range. ?

2. If not, any way to better judge or know that certain currencies pairs

is ranging ?

3. How do I know what is the average daily range of a certain currencies pair,

how I know ?

Please advise.

Thank you

Re: How to Identify Flat Market

1. I've created the 20 day average indicator somewhere in this forum. It's a request from mod Gyverd. I forget where it is or the name. I think it will have "average" or "day" or "daily" in it, sorry for that. Just search for it.

2. I don't think an EA could do that. The best way to look whether a market is ranging or not is using one of the most precious tools in the whole world... you eyes :D

3. the indicator i've created above could tell you the average in certain days. I think there are also other indicators that tells the daily average. Igor used to have 2 variant created. Try to google igor.

Problem is the average for one pair could be different from time to time. So, if you are trying to build a system from those daily average numbers would be quite hard. I've tried it before and gave up coz the numbers are changing from time to time. If you could create a system based on that, I would definitely like to know :D

Regards,