A. You can't with 100% accuracy so why would you want to?
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i want to because iam primarily a trend trader. i get battered when the market iam trading goes into a range. knowing with at least 80% accuracy when a market is due to go into range will save me a lot of pips.
How about looking at the new candle body sizes getting smaller with longer wicks at both ends, and also the relative position of each new candle, and whether if it stays within the range of previous candles. Spinning Tops, Doji's and Inside Bars.
The Only Limit, is the One that you Set Yourself - Felix Baumgartner
i want to because iam primarily a trend trader. i get battered when the market iam trading goes into a range. knowing with at least 80% accuracy when a market is due to go into range will save me a lot of pips.
so guys anyone know ?
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I look for things like this.
LH and HL within previous H L range.
Works on most TF.
Not my interpretation, but from a Pro trader who used to have his own thread on FF. Best definition I've found.
I find looking at the Average Directional Index (ADX), which is derived of the Directional Movement Index, or looking at the Average True Range (ATR) to be the best ways to catch sideways markets early.
the Bollinger Bands also claim to have some sort of predicting power, and since they relate to a moving average, it might be worth checking them out also.
I find looking at the Average Directional Index (ADX), which is derived of the Directional Movement Index, or looking at the Average True Range (ATR) to be the best ways to catch sideways markets early.
Q. how does one identify a ranging market BEFORE it goes into a range ?
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You can only predict with a certain probability that a market is entering a range beforehand. Of course you won't be able to predict this with certainty (Nothing is certain in the whole world anyway, so what do you expect from the market).
There are numerous ways where you can estimate the market mode beforehand with a certain probability. One of them is the Elliott Wave Theory. This will require a lot of work from you though.
Another method is to rely on patterns happening after patters. For example, sharp quick moves are USUALLY followed by flags or pennants (Which are some form of consolidation or range trading markets).
Pro-longed steady moves are USUALLY followed by triangles especially when the move hits a strong resistance level.
This will also require some study and work from your side.
how about simply looking at higher highs, higher lows, lower highs, lower lows? we know the definition of uptrend (Higher Highs, Higher Lows), we know the definition of downtrend (Lower Highs, Lower Lows). then based on these swing points or pivot points analysis, we should be able to tell when an uptrend is over (but not necessarily mean downtrend) and when a downtrend is over (but not necessarily mean uptrend). suggestion: read a book.
