how does one identify a ranging market? | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

How to identify the most Ranging Zones 53 replies

How to identify ranging market? 22 replies

Which one is trending or ranging? 1 reply

Market conditions: trending vs. ranging, technicals vs. intuition 3 replies

Ranging Market System 6 replies

Attachments: how does one identify a ranging market?
Exit Attachments

how does one identify a ranging market?

  • #1
  • First Post: Nov 29, 2010 5:45pm Nov 29, 2010 5:45pm
Q. how does one identify a ranging market BEFORE it goes into a range ?
  • #2
  • Nov 29, 2010 7:14pm Nov 29, 2010 7:14pm
A. You can't with 100% accuracy so why would you want to?
  • #3
  • Nov 29, 2010 7:38pm Nov 29, 2010 7:38pm
You can't
  • #4
  • Nov 30, 2010 1:11am Nov 30, 2010 1:11am
Try combination of fractal dimension index and Ehlers corona indicators.
  • #5
  • Dec 2, 2010 5:50am Dec 2, 2010 5:50am
Quoting sebohsj
A. You can't with 100% accuracy so why would you want to?

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 ?
  • #6
  • Dec 2, 2010 5:56am Dec 2, 2010 5:56am
you can check few previous bars for example 4 hrs if new high's or lows are not broken for few candles then it means market is in range.
  • #7
  • Dec 2, 2010 6:35am Dec 2, 2010 6:35am
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.
It never gets easier, you just get better
  • #8
  • Dec 2, 2010 6:38am Dec 2, 2010 6:38am
Quoting whatfx
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 ?
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.
Attached Image (click to enlarge)
Click to Enlarge Name: eur.gif Size: 17 KB
Never underestimate an idiot.
  • #9
  • Dec 2, 2010 6:43am Dec 2, 2010 6:43am
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.
  • #10
  • Dec 2, 2010 6:44am Dec 2, 2010 6:44am
Quoting skillful
You can't

You can.
  • #11
  • Dec 2, 2010 6:49am Dec 2, 2010 6:49am
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.
  • #12
  • Dec 2, 2010 7:15am Dec 2, 2010 7:15am
You cant, and you dont need to!

If you are a trend follower then you probably know that few huge trades makes up (and + some more ) for a long series of frustrating small loses.

Can you afford to miss one of them (big winners), while trying to determine was the market going into a range???

Do you put that much trust in ADX, and BB and all those other stuff?
You wont survive without preserving!!!
  • #13
  • Dec 2, 2010 7:19am Dec 2, 2010 7:19am
omg. this thread is very fail so far. back and forth. bad question = bad answers.

here's another for you... identifying a ranging market is the easiest part of trading. all you have to do is open a chart.

markets are always ranging in one way or another, it all depends on the perspective you are viewing it through.
Congratulations ScalaFX for coming out of the closet!
  • #14
  • Dec 15, 2010 5:02pm Dec 15, 2010 5:02pm
Quoting purley
Try combination of fractal dimension index and Ehlers corona indicators.

do you have the links to these ?
  • #15
  • Dec 24, 2010 7:57pm Dec 24, 2010 7:57pm
Quoting Mercurius
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.

can you explain ?
  • #16
  • Dec 24, 2010 11:05pm Dec 24, 2010 11:05pm
Quoting whatfx
Q. how does one identify a ranging market BEFORE it goes into a range ?
use a combination of parallel trendlines on the main price chart, easier to see range than using any indicators that plots on the subgraph (i.e. below the main chart).
http://www.forexfactory.com/showthread.php?t=256484
http://2.bp.blogspot.com/_buPOR1D4eX...I/s1600/15.png
  • #17
  • Jan 3, 2011 8:15am Jan 3, 2011 8:15am
any other thoughts guys ?
  • #18
  • Jan 3, 2011 8:43am Jan 3, 2011 8:43am
Quoting whatfx
Q. how does one identify a ranging market BEFORE it goes into a range ?
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.


Regards,

Nader
  • #19
  • Jan 3, 2011 8:49am Jan 3, 2011 8:49am
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.
  • #20
  • Aug 1, 2011 12:00pm Aug 1, 2011 12:00pm
anyone here still ?
0 traders viewing now