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How Detrmine if Market is Trading Sideways?


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Does anyone know how to tell if a market is trading sideways [or in consolidation] instead of after the fact?

I see too many postings that talks about it when it happened, but nothing that can identify while trading live.

Even a pair bouncing 200 PIPs between support and resistance is considered a sideways market, but that is a lot of PIPs to watch passing you by....

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Re: How Detrmine if Market is Trading Sideways?

 

Almost trending market during London session and sideway session during asian session. There are too many factors influence the market. I used MA 21, 50 and 200 to determine the trending session and use bolinger band and stochastic when I trade during consolidation session. Hope this can help

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Re: How Detrmine if Market is Trading Sideways?

 

Does anyone know how to tell if a market is trading sideways [or in consolidation] instead of after the fact? ...

If someone knows it before the fact then he's an oracle, and if he can tell if it's ranging sure as hell he can tell if it's trending before the fact. Mate that's trading you take your chances.

regards

Ad augusta per angusta
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Re: How Detrmine if Market is Trading Sideways?

 

check out the candlestick that on your bar chart.

if the last 2 candel bar close price is in the range of the last third candlebar, then it is consolidating.

the size of candelstick is also telling you something. If it comes large candlebar, much biger than the bars before, then there is going to have a break out.

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Re: How Detrmine if Market is Trading Sideways?

 

check out the candlestick that on your bar chart.

if the last 2 candel bar close price is in the range of the last third candlebar, then it is consolidating.

the size of candelstick is also telling you something. If it comes large candlebar, much biger than the bars before, then there is going to have a break out.

 

Does it matter which timeframe one looks at?

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Re: How Detrmine if Market is Trading Sideways?

 

it does not matter which timeframe one looks at.

 

finimej, you spelt me out =D>

When you see H1 moving sideway, it might trending in M30 or M15.

When you see M30 moving sideway, it might trending in M15 or M5.

When you see M1 moving sideway, it might trending in S1(not support, but seconds timeframe)

Train up your eye plus recent support and resistance level to help you. When a building is on fire, you have to be quick to find your escape way before you get burnt.

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Re: How Detrmine if Market is Trading Sideways?

 

Just follow the price action. In the example of an uptrend, price will fail to make a new swing high (bar preceded and succeeded by lower highs). Price then makes a lower low followed by another run at the high which will either be a double top or a lower high. Price then makes a equal low or a higher low. At this stage you can see the price is within a range.

 

A more basic definition of a range is a double touch of the highs and lows.

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  • 1 month later...

Re: How Detrmine if Market is Trading Sideways?

 

Does any indicator can determine market is sideways?

 

 

Try the Keltner channel:

 

centerline = sma(C,15)

 

top_line = centerline + factor * atr(15)

 

bottom_line = centerline - factor * atr(15)

 

factor =1.2 is good

 

factor =1 is ok

 

when the keltner channel is horizontal and price fluctuates inside the channel, then the market moves sideways. :-bd

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  • 3 weeks later...

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