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Originally Posted by ryanklefas
Hi folks.
I'm looking for an indicator that can display whether or not a market is ranging or trending. I realize that there are a number of these types already out there, such as ADX, but I'm hoping to find something that works on a percentage scale or something. The reason being is that I'm doing research on devising my own grid trading system that will have two modes of trade logic: ranging markets, and trending markets. The Volumes indicator that comes standard with MT4 looks like it could do pretty well for this task, but since it doesn't have a percentage scale, deciding on whether the market is ranging or trending would be left to a person's discretion. I don't need the indicators to be dreadfully accurate or anything, just to give me a general idea as to what is happening. I've come across certain indicators in my search such as Volume by Price ( http://www.forexrealm.com/technical-...-by-price.html) but have been unable to find an equivalent for MT4. Any and all help is appreciated. Thanks. |
Hi Mate
Nittany just created an ADX indicator that does exactly as you wish. Go to the 'ToR 1.02 - Trending or Ranging' thread and download it.
Don't ask me whether it's fantastic, I have only sighted it but it looks as though he put some thought in and it interprets ADX moves on MTF's well.
At the end of the day, nothing beats good old trader experience and manually sighting the chart. A few trend lines here and there will quickly tell you what is going on. You are going to be hard put to find a single indicator that will match all your particular needs.....and I mean close to impossible if you expect and EA to coldly follow it without trader interpretation.
If, youre looking at grids (yikes) then you want to set up something fluid that will adjust with market volatility. Quiet days will see ranging in a 50 pip consolidation that would be well suited to grids spaced very close together. However if the market runs away, the grid and increments between orders needs to grow otherwise you are going to be burned with multiple lots facing the wrong way.
A method of 'auto adjusting' would be by use of Murrey Math as this will change Octave height according to set period range.
All the best with it.
FxN
