Trending and Ranging

I've been around the forex market for nearly 4 years now and it seems there is a general consensus that trending markets and ranging markets cannot be traded with the same system.

Furthermore, I've seen several system that work great only in trending markets, and several that work great only in ranging markets.

So what is needed is some sort of methodology that precisely defines a trending market and a ranging market. Once we have this, then half the battle is won and we can then focus on refining our respective trending and ranging systems.

I am a strong believer in "less is more" and "KISS" since the more complicated the definition is, the more we risk curve-fitting the methodology to a specific range of time in the market.

So, what is everyone's best idea on how to precisely identify ranging and trending markets?

What's your best idea?

one man's ranging price action is another man's price action full of many up and down trends.

That's why I've ended up only looking for, and trading around, Support and Resistance.

I have S/R based on Monthly/Weekly charts. I focus in when price jiggles around these major points.

Then I look for shorter-term S/R levels on the Daily/4-hr charts that I play as range trades.

When price breaks through or climbs away from a S/R point then I'm a trend trader until I get to the next S/R area where price stalls and that's when I'm a range trader again.

3 years ago I didn't realise how simple the mechanics of trading could be. It's only taken 1000s of hours of screen time and an open mind.

Every reply has been a very good one so far!

HI aicccia:

That is a myth.

Stop by this FF thread and see how it is done.

Let me warn you, there are no fancy charts or indicators involved. It is really simple and that may be too boring. On the other hand, you can trade it profitably no matter what the market is doing.