Ranging Markets...

Hi,

I'm fairly new to forex trading and have only just started trading live.

I'm using a couple of trending market systems that have come from this forum and I'm very happy with it. The problem I have now is how to spot that the market is finishing trending and moving into consolidation.

This is probably going to be a vague question but does anyone know how to spot this change in the market so I don't enter a trade using a trending strategy and obviously end up loosing money.

Also, does anybody know an effective way of trading this period of consolidation even if you're only aiming for a couple of pips at a time?

Thank you in advance.

Jonny

Pick your currency pair (any will do) and go to shorter time frame and look for a couple of highs and lows making a channel.
I've attached a 15 min chart to give you an idea.
You could set buy/sell limits at the extremes with tightish Stop Loss settings to protect against breakouts, or wait for price action to confirm change of direction.
There's around 25 pip range on this pair AUDNZD (but the spread is 10 pips so not much to play with) but the principle applies to other pairs, this was only done as an example.

Peter