jtimpson Posted January 31, 2010 Report Share Posted January 31, 2010 Hi, I'd like some suggestions on how thru price actions or indicators to tell when a currency in is a trading range/congestion. The reason I ask this is because my trend following methods work great when a currency is trending but gets whipsawed in trading ranges. Any suggestions appreciated! Jim Quote Link to comment Share on other sites More sharing options...
learningfx Posted January 31, 2010 Report Share Posted January 31, 2010 Re: (Req) Identifying when Currency in Trading Range/Congestion? Hi Jim, For me, I use trend line and MA to check whether the overall chart is trending or ranging. When trend line & MA are flat, it indicate ranging market to me. Other might have better suggestion to share with you. HTH ^:)^ Quote Link to comment Share on other sites More sharing options...
jtimpson Posted January 31, 2010 Author Report Share Posted January 31, 2010 Re: (Req) Identifying when Currency in Trading Range/Congestion? Hi Jim, For me, I use trend line and MA to check whether the overall chart is trending or ranging. When trend line & MA are flat, it indicate ranging market to me. Other might have better suggestion to share with you. HTH ^:)^ Thanks. I do the same. Appreciative if anyone has more to add. :)>- Quote Link to comment Share on other sites More sharing options...
lerxst Posted January 31, 2010 Report Share Posted January 31, 2010 Re: (Req) Identifying when Currency in Trading Range/Congestion? Hi, ADX above / under 20 is a good indication also. Quote Link to comment Share on other sites More sharing options...
Cyrillic Posted February 1, 2010 Report Share Posted February 1, 2010 Re: (Req) Identifying when Currency in Trading Range/Congestion? There is 100% indication, you can be sure currency will start to trend after major news release or after an apperant critical 200 - 400 pip range in the pair is broken. Trade only euro and early us for trending market. Also watch the wave because a very strong previous move will suggest to you the streght of reversal and wether or not it will continue. If you are looking for smaller trading range (50 - 100 pips) indicators could be helpfull, tranding moves after that move more into fundamentals leaving technicals lagging behind. Quote [spoiler:26ukmy10]Never trust, never fear, never beg[/spoiler:26ukmy10] Link to comment Share on other sites More sharing options...
highrise Posted February 2, 2010 Report Share Posted February 2, 2010 Re: (Req) Identifying when Currency in Trading Range/Congestion? You are not alone !! Vast majority of indicators and EA simply fail for this reason, because they are written to assume trend conditions. Looking at the chart at a specific time and trying to predict whether the market is going to range or trend is a very difficult exercise. You can try different methods to predict this but no method will be consistent. The best that can be done is to minimize the loss and get out of the trade if you realize that it is going to range and not trend. Quote Link to comment Share on other sites More sharing options...
keifer Posted February 2, 2010 Report Share Posted February 2, 2010 Re: (Req) Identifying when Currency in Trading Range/Congestion? price action method: from uptrend into a range... Identify swing points. Fractals indicator will show you a 5 bar swing point... 3 bar combination also works. sequence is HH, HL, LH or equal H, LL or equal L. If price fails to make a new HH or LL then you in range. John Murphy wrote the definition of a range is 5 touches of the high or low. I find this too slow and price is usually ready to break out by the time this happens. I like ADX as a trend filter. Below 30 and you're in a range. Moving averages flat with no angle also works. Time of day... asian session usually in a range. Pre news market tends to range. ATR done for the day, market tends to range. Quote Link to comment Share on other sites More sharing options...
Sauber Posted February 2, 2010 Report Share Posted February 2, 2010 Re: (Req) Identifying when Currency in Trading Range/Congestion? " Plot a 55 period Simple Moving Average and look at the chart. If the candles are above this Moving Average line and the line is also pointing up then its an Uptrend and if the candles are below the 55 SMA and the SMA is also pointing down then its a DownTrend. The more the inclination of the 55 SMA the stronger the trend. If the SMA line is flat, the market is Ranging, not in a Trend " Quote Link to comment Share on other sites More sharing options...
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