"Don't trade in a ranging market"

I started putting positions like suggested in this thread. You need to put in positions at 5 p.m. EST and basically wait what happens.
Someone mentions in that thread that you shouldn't trade in a ranging market and after a few days I see why. I put the positions in with USD/JPY and have been moderately successful.

1.Would you step out of the market when it starts to range? Or better: you made a small profit (lets say 14 pips) and it starts to range, would you take the profit?

2. If you put in orders with a fixed time frame (put in order on 8/16 at 1700 pm and let it end 8/17 at 1700 pm), will MT4 just end the position with the profit or should it have taken the t/p first and you end up with nothing?

3. Based on what candle do you decide the market ranges? So far I've been watching H4 and step back to H1 and M15 to make a decision. (Assuming that you put in positions that run for 24 hrs)

Thanks!!

depends on your system. Obviously if it is trend-following then you should not trade in a range. If it is a scalping system then a trend is not always necessary. If you just trade according to fundamental opportunities then previous market conditions are also not of much concern.


If the market forms a range and doesn't take out highs or lows, then it starts to range, it's as easy as that.

Personally, I think sometimes, its easier to trade a ranging market than a trending market, because at least you know the range, and high probability you can trade within your control.

I know few will debate that trending market are easier to trade, but technically it depends on when and where you enter, and psychologically, you may not know when to exit due to greed of trying to pocket as much pips as possible.

Knowing when is enough, is a winner.

I prefer to trend ranging markets only. Actually... Slow trending with high volatility is my preference. Instruments with a Trend/Range ratio that maintains around 0.1-0.2 are great!

That is the ratio of velocity vs range in a section of price action. Eg... 20 candles.

EUR/USD last night was packing a T/R ratio of around 0.4-0.6 all night past mid EU session... Grrr....


It's just a lot easier to make money faster in a ranging market too... Trends take FOREVER! Well, there are some fast ones sometimes... But usually they are slow grinds.