GBPJPY and EURJPY have been making very large daily ranges, I think many people have developed profitable trading strategies to exploit this phenomenon. I myself have been using a very risky trading plan to take advantage of these large ranges.
since large ranges are key to the success of these strategies, it's crucial to konw why the pairs can move so much. I guess they are not going to always behave like this, I therefore think it very important to be able to predict and react swiftly to possible slowdowns.
I've been using a custom ATR indicator to determine whether or not the current day is tradable. it's actually a combination of 3 ATRs set to the value of 1, 5 and 21. If any of the ATR's value is less than 100 pips for GJ, I stop trading until it comes back to above 100 pips.
this method is very crude, and it still has a one day lag. I wonder whether or not sb has a better way to do this.
attached is the custom ATR indicator metioned above, just in case sb might be interested.
since large ranges are key to the success of these strategies, it's crucial to konw why the pairs can move so much. I guess they are not going to always behave like this, I therefore think it very important to be able to predict and react swiftly to possible slowdowns.
I've been using a custom ATR indicator to determine whether or not the current day is tradable. it's actually a combination of 3 ATRs set to the value of 1, 5 and 21. If any of the ATR's value is less than 100 pips for GJ, I stop trading until it comes back to above 100 pips.
this method is very crude, and it still has a one day lag. I wonder whether or not sb has a better way to do this.
attached is the custom ATR indicator metioned above, just in case sb might be interested.
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