Avoiding trading in a sideways range | Forex Factory

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Avoiding trading in a sideways range

  • #1
  • First Post: May 16, 2014 10:09pm May 16, 2014 10:09pm
What methods are there or do you have to avoid trading in the wrong direction or when the market is ranging? which results in many small losses and frustration for most traders I assume? It could be something like avoiding trading during asia, although sometimes decent moves do happen during Asia. Or do you have other indicators to tell you the current direction on a higher time frame to correlate with where that is going and only trade that direction? Please describe in detail fellow traders, we are here to help and to learn
  • #2
  • May 16, 2014 11:13pm May 16, 2014 11:13pm
Not really sure what you're asking.

But if you're looking to avoid trading in a sideways range (sticking to your thread title) in your preferred timeframe, then you can always select a pair that DOESN'T trade in a sideways range.

Pair selection is a concept I notice traders here neglect because some of them are fixated on trading only particular pairs while ignoring others.
I'm not trying to convince anyone. I'm not in the "convincing" business.
  • #3
  • May 16, 2014 11:35pm May 16, 2014 11:35pm
Quoting skenobi
Not really sure what you're asking. But if you're looking to avoid trading in a sideways range (sticking to your thread title) in your preferred timeframe, then you can always select a pair that DOESN'T trade in a sideways range. Pair selection is a concept I notice traders here neglect because some of them are fixated on trading only particular pairs while ignoring others.
you don't think every pair ranges at some points?
  • #4
  • May 17, 2014 12:05am May 17, 2014 12:05am
Quoting justin7
{quote} you don't think every pair ranges at some points?
If you're asking whether I think it's possible for EVERY pair to range in the SAME timeframe, my answer would be it's possible. To be honest, I've never really considered that possibility before.

But definitely if I can't find any pair I LIKE that's trending in a particular timeframe, I'd just switch timeframes and scan again.

Intuitively, I don't think it's possible for ALL pairs to range in ALL timeframes.
I'm not trying to convince anyone. I'm not in the "convincing" business.
  • #5
  • May 17, 2014 1:55am May 17, 2014 1:55am
Quoting justin7
What methods are there or do you have to avoid trading in the wrong direction
If you find, please share ... I will then retire soon ...

More seriously, unless you have a 100% accurate entry, you have to accept to be wrong sometimes.
MT4/MT5 EAs/Indicators/Alerts coder
  • #6
  • May 17, 2014 2:56am May 17, 2014 2:56am
Quoting justin7
What methods are there or do you have to avoid trading in the wrong direction or when the market is ranging? which results in many small losses and frustration for most traders I assume? It could be something like avoiding trading during asia, although sometimes decent moves do happen during Asia. Or do you have other indicators to tell you the current direction on a higher time frame to correlate with where that is going and only trade that direction? Please describe in detail fellow traders, we are here to help and to learn

I look at it only by eye... if price has made a high and low and is trading in this area with more than 5 bars i tend to stay out... but also depends on the range width... very wide i will take signals at the base to the high. But if its narrow i stay away...

It’s hard.... but for me i tend not to take to many trades during Asia... so in the chart below some ranges that could get u into trouble if you didn't wait for clear breaks and changes in trend. these are from last week, what's hard with ranges is you can get sucked in during the bar... so it's always best to try and wait for the bars close to give you that full picture of where price is at. that's what helps me.
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  • #7
  • May 17, 2014 4:54am May 17, 2014 4:54am
Quoting justin7
What methods are there or do you have to avoid trading in the wrong direction or when the market is ranging? which results in many small losses and frustration for most traders I assume? It could be something like avoiding trading during asia, although sometimes decent moves do happen during Asia. Or do you have other indicators to tell you the current direction on a higher time frame to correlate with where that is going and only trade that direction? Please describe in detail fellow traders, we are here to help and to learn
Not possible.
This "many small losses and frustration" is the curse on those buying high and selling low. The market feeds on "break-out" traders.
  • #8
  • May 17, 2014 6:36am May 17, 2014 6:36am
Quoting FerruFx
{quote} If you find, please share ... I will then retire soon ... More seriously, unless you have a 100% accurate entry, you have to accept to be wrong sometimes.
100% right.... someone asked me that question 2 days ago.... if you know that you know everything....
  • #9
  • May 17, 2014 6:55am May 17, 2014 6:55am
This is so lol...

#1 You can NOT avoid trading "sideway range" by the time you REALIZED you were STUCK in sideway range it's TOO LATE. There is NO EARLY dectection like thunder before rain.... because the market is random.

#2 You want to avoid trading wrong direction how about you play the ONLY ONE SIDE buy and hold loss until recover and KEEP ON BUYING every low you are guarantee to win one if not many order...provided you can "keep the rule BUY AND HOLD loss forever in check"

#3 Q: It could be something like avoiding trading during asia, although sometimes decent moves do happen during Asia.
Answer: The reason why asia is slow MOST OF THE TIME is because low liquidity so you can avoid it but not me... I play during asia..as it's one of the easy way to win with big leverage without worry some random news and random big newyork shark drive price against me for 100 pip. (Note: I dont' use stoploss)

#4 You are definitely not the first person or will be the last person who keep asking these question. All of the question is already answered online... It's just you don't accept the answer.

#5 But the best way to learn all of this and none of us here can teach you is for you to lose alot of money in the market. Why do you think many newbie make the same same mistake over and over despite the warning advice that was given to them from those who ARE successful. You are NOT ANY special so you will suffer the same thing as we all went through which is "REBEL against your inner self to fight against the fated losing destiny".
  • #10
  • Edited 9:51am Feb 2, 2017 9:36am | Edited 9:51am
S I M P L E...
Just trade 10 - 15 minute before big news release..
in most cases ,when big news release it will broke most of range..
and the pips sometimes more bigger than tranding market itself..
the problem is .. you need fast response due high traffict market move.. 300 points profit can turn into -300 in just less than 5 second.. trailing is your friend..
You must careful with pending order before news.. some F*** broker can move your order .. i have that problem once..
and when you send a support ticket to them ,, they have thousands reasons for kick you out..
the best way to enter market is 20 second before news release...

technically
you can try analyze the volume market to detect choppy market..
im not understand how volume works.. so i can't help you much about this ..

its my answer.. accept or not .. its just my oppinion..

how life works..
Once you solve one problem there is another problem waiting..
  • #11
  • Last Post: Feb 3, 2017 1:19am Feb 3, 2017 1:19am
I think a better question is if your trading strategy has an edge trading in sideways markets. If not, then you should not trade in a sideways market.

For example, if your trading strategy is momentum-based or trend-following, then you'll underperform in a choppy market.

There are other ways to profit from a sideways market. One example is the carry trade (buying a currency with high yield by borrowing with a currency with zero or low yield). But with the current ZIRP/NIRP environment, that's a tough trade these days.

Another example, if you trade options, you can trade market-neutral strategies where you make money as time passes (from theta decay) assuming price just chops around within a certain range. That goes beyond the scope of spot FX but I'm not a fan of limiting myself to any specific financial instrument and thought it might be useful to share.
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