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How to identify ranging market?

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  • First Post: Jun 5, 2016 2:55am Jun 5, 2016 2:55am
Trading is a simple bussines if you buy when market is rising and sell when market is falling.

Problem starts when we are in the ranging market.

I am interested what do you use to identify ranging market?

Do you stay away when market is ranging or do you apply different approach to trading in ranging markets?
Quoting ataata
Trading is a simple bussines if you buy when market is rising and sell when market is falling. Problem starts when we are in the ranging market. I am interested what do you use to identify ranging market? Do you stay away when market is ranging or do you apply different approach to trading in ranging markets?
Quick and basic way would be to use Parabolic SAR in the timeframes around what you are targeting.

You could also go into multiple stochastics low, med, high if you want to get more technical...here, the sky's the limit of course

Keep it simple
good topic,

i use a basket of pairs to identify market behavour on my chosen pair .you can clearly see if the market is ranging or it has harmoney and the bias for rise or fall in value.the values across the basket conflict in ranging markets you are also able to determine the range withing each pair by looking at the individual value and the stall point ,during this type of market condition you can apply a method for trading the range.if you see the stall point break on some of the pairs you can start to look for a break out all beit false or honest.you can actually get forward entry to enter before the break .

if the market is trending the majority of the time the market is all in sync and confirms the agreement allowing you to hold trades for the lenght of the trend,the values will tell you when to take your profits
Quoting ataata
Trading is a simple bussines if you buy when market is rising and sell when market is falling. Problem starts when we are in the ranging market. I am interested what do you use to identify ranging market? Do you stay away when market is ranging or do you apply different approach to trading in ranging markets?
Just draw parallel lines from 3 candles back.
here is an example on the 4h.
4h for range traders, 15m for day traders. Daily for long term traders.
Attached Image (click to enlarge)
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Without having an understanding of down, you can never appreciate up.
If the price doesn't make new highs or lows for quite some time, it's probably ranging market. Some currency pairs are infamous for that
Quoting diceman555
good topic, i use a basket of pairs to identify market behavour on my chosen pair .you can clearly see if the market is ranging or it has harmoney and the bias for rise or fall in value.the values across the basket conflict in ranging markets you are also able to determine the range withing each pair by looking at the individual value and the stall point ,during this type of market condition you can apply a method for trading the range.if you see the stall point break on some of the pairs you can start to look for a break out all beit false or honest.you...
Quoting metta87
{quote}
?
TO find the ranging market, i uses RSI indicator with MACD for getting the market moves. Most probably i used MACD, which gives more accurate results.
Quoting ataata
Trading is a simple bussines if you buy when market is rising and sell when market is falling. Problem starts when we are in the ranging market. I am interested what do you use to identify ranging market? Do you stay away when market is ranging or do you apply different approach to trading in ranging markets?
what is and why is problem with ranging market? trading is trading.
Not sure I understand your question? Why would anyone avoid ranging markets? That is the bread-n-butter of trading. If you are not trading ranges, what are you trading? Nothing? Just staring at charts? A trend is nothing more than a higher time frame range. If you intend to succeed in trading, you need to learn how to trade ranges.
You cannot be extraordinary by being normal
If you are trading price action, ranges don't matter. You just wait. Sooner or later price will move.
It sucks!
Quoting dkrock
Not sure I understand your question? Why would anyone avoid ranging markets? That is the bread-n-butter of trading. If you are not trading ranges, what are you trading? Nothing? Just staring at charts? A trend is nothing more than a higher time frame range. If you intend to succeed in trading, you need to learn how to trade ranges.
and a range is a trend on a lower timeframe, its all about perspective.
Quoting diceman555
good topic, i use a basket of pairs to identify market behavour on my chosen pair .you can clearly see if the market is ranging or it has harmoney and the bias for rise or fall in value.the values across the basket conflict in ranging markets you are also able to determine the range withing each pair by looking at the individual value and the stall point ,during this type of market condition you can apply a method for trading the range.if you see the stall point break on some of the pairs you can start to look for a break out all beit false or honest.you...
Interesting. I wonder if you can elaborate more on this ?
No guts, no glory
Quoting Butterscotch
TO find the ranging market, i uses RSI indicator with MACD for getting the market moves. Most probably i used MACD, which gives more accurate results.
Can you please eloborate on this?
Quoting abokwaik
{quote} Interesting. I wonder if you can elaborate more on this ?
if i understand diceman555 correctly, it like
if you want to trade EUR/USD, look at EUR/CHF, EUR/GBP, EUR/JPY AND USD/JPY, USD/CHF, USD/GBP (maybe and GOLD)


for ataata
"I am interested what do you use to identify ranging market?"
-> You must know what market you are looking at
-> You must know what trend is, if it is not a trend, it is a range
-> You must know what range do you interest: inside hour or inside a session or inside a day or inside a week or inside a month
-> Then write a script that help you do that like
-> define min range, max range to find normal range
When you lose, I'm the loudest who laugh at your face )
Quoting dkrock
Not sure I understand your question? Why would anyone avoid ranging markets? That is the bread-n-butter of trading. If you are not trading ranges, what are you trading? Nothing? Just staring at charts? A trend is nothing more than a higher time frame range. If you intend to succeed in trading, you need to learn how to trade ranges.
i like your post. Simple And Zelo above.
Fact is, new people need experience to identify ranging. Well need experience with everything there's no big finger to show you. Try several small MA to filter noise. For exit look at MACD.
Beware of robber banks (RB), bad advisors.
Quoting abokwaik
{quote} Interesting. I wonder if you can elaborate more on this ?
In the chart ive posted which is the 15 min cable chart of the last few days ,you can see the price trading along its average price which is determined from historic price.there are also levels there which are projected from the average price similar to pivots but more precise .

whilst price trades along the average within its range generally the whole market will be doing similar ,ie ,there is little influx ,if you study the value change for key pairs you can determine the whole markets range.for the range to be broken on a given pair a change needs to occur,all beit an influx in or out of a key currency,a shortage of liquidity ect,those values also show you the larger range .unless the break from that range is supported across the market the break of range is not generally honest and substainable.the market is far more inter connected than some would believe or understand,

i have been trading this chart all week and can tell you every move down to the next support was collective across market ,on occasion i was able to enter before the move .

whilst the market is collectivly in range allowing for a little drift you are safe to buy and sell within it,offcoarse the bias would be to take shorts from the highs within the range with the knowledge your trading into the support and a possible break below,the market range will back that up

all these levels are before the fact
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Whether a market is ranging or trending will depend on the timeframe you are trading. A ranging market on the daily timeframe may be a trending market in a shorter time frame, and vice versa.

I would "detect" a ranging market when candles are longer than what they normally are, and prices don't seem to move out of the support/resistance zones of the time frame I normally trade.

When that happens, I would look for opportunities in different time frames, where there might be a trending market somewhere. If I really can't find a trend, I'll usually head to some other assets to trade.

Hope this helps you!
Easiest way is to look for lower highs and higher lows
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