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  #1 (permalink)  
Old 07-21-2009, 11:01 PM
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Question Trading Sideways Markets

Hello all,

I've attached an indicator that I found on Metaquotes and modified a bit. I've been trading for almost 10 years, but I still have a hard time predicting flat or sideways markets. My trading style favors trends and reversals, not channels, so... Any ideas or thoughts about predicting sideways markets would be mucho appreciated.

I've been using the attached indicator in conjunction with the RSI, CCI and some MA's, but I'm sure there is a better way. If we could accurately predict sideways market conditions, we could either channel trade or sit on our hands. Maybe this is an impossible task? but ya never know??

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File Type: mq4 4Xlounge Trend2.mq4 (13.7 KB, 112 views)
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Old 07-21-2009, 11:49 PM
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Very hard to tell...
One method I have read is for gbp-us. If the difference between H and L of the previous day is less than 200 pips, then expect sideways for the trading session. Usually it works and avoid you many false entries, but usually after a sideways a big break happen and you miss it, coz no trading in sideways and you dont know how much will last. Complicated.

Maybe same rule can be applied for other pairs depending their volatility, I mean that if for gbp-us the range is 200 pips, for eur-us can be less than 200 because usually move in tighter range. ...(etc. for other pairs).

Some indicators I have tested long time ago to determine sideways, but no one really works. My best indicator actually is to look the calendar news for the day. If there are high-to-medium-impact news, I get ready for a break. If not important news, I take my day.

Maybe an indicator can be developed using that tip . But that indy must know how to read Forex Tsd calendar

Regards,

Last edited by fxnewbie; 07-21-2009 at 11:52 PM.
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Old 07-22-2009, 12:23 AM
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Quote:
Originally Posted by fxnewbie View Post
Very hard to tell...
One method I have read is for gbp-us. If the difference between H and L of the previous day is less than 200 pips, then expect sideways for the trading session. Usually it works and avoid you many false entries, but usually after a sideways a big break happen and you miss it, coz no trading in sideways and you dont know how much will last. Complicated.

Maybe same rule can be applied for other pairs depending their volatility, I mean that if for gbp-us the range is 200 pips, for eur-us can be less than 200 because usually move in tighter range. ...(etc. for other pairs).

Some indicators I have tested long time ago to determine sideways, but no one really works. My best indicator actually is to look the calendar news for the day. If there are high-to-medium-impact news, I get ready for a break. If not important news, I take my day.

Maybe an indicator can be developed using that tip . But that indy must know how to read Forex Tsd calendar

Regards,
Thanks! but yes... like you said, it's complicated and inconsistent. I've tried to create an indicator that can look backward to predict wave patterns (i.e. small waves would = sideways and larger waves would = trend). Maybe the historical ATR is the key, hmm... thanks again...
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Old 07-22-2009, 12:33 AM
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Quote:
Originally Posted by riffster View Post
Thanks! but yes... like you said, it's complicated and inconsistent. I've tried to create an indicator that can look backward to predict wave patterns (i.e. small waves would = sideways and larger waves would = trend). Maybe the historical ATR is the key, hmm... thanks again...
If you find something that can determine sideways in accurate way, you will make history in forex. Waiting for your findings...
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Old 07-22-2009, 12:39 AM
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Quote:
Originally Posted by fxnewbie View Post
If you find something that can determine sideways in accurate way, you will make history in forex. Waiting for your findings...
Lol, yep... hense this post... although, TSD hasn't let me down so far. This forum is a fantastic resource of ideas and experience. Come on TSD!! haha...
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Old 07-22-2009, 03:40 PM
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You have to consider that when market is choppy it can be overbought-oversold as well.I like Igorads' volty chop zone indicator.There are some very good indicators to determine choppy zone but as I said market is not one dimensional.
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Old 07-22-2009, 04:13 PM
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hi

price consist of time and value ...BIG QUESTION is WHEN , when market is choppy,when uptrend,when downtrend , to knowing the WHEN you should know "what is a trend anyway?"....old school theory like dow theory is a good one to learn

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Old 07-22-2009, 04:34 PM
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Quote:
Originally Posted by prasxz View Post
price consist of time and value ...BIG QUESTION is WHEN , when market is choppy,when uptrend,when downtrend , to knowing the WHEN you should know "what is a trend anyway?"....old school theory like dow theory is a good one to learn

===================
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I would define a trend in the forex market as: 'higher daily highs or lower daily lows'. The real question is "how many days"? or can we drill down to trading sessions instead?

Yes, I experimented with all of the above, but the results remain inconsistent. Is there an indicator floating around TSD that predicts ATR waves based on historical performance?
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Old 07-23-2009, 05:09 AM
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Question

Ugg, with the spammers, lol... Just a quick reminder, I'm hoping someone on TSD knows an indicator? Is there an indicator floating around TSD that predicts ATR waves based on historical performance?

Thanks in advance...
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Old 07-23-2009, 09:58 AM
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Yes.
Your small thread was spammed by signal provider.
Than it was spammed by good broker.
For now - you should wait for big banks to come to your thread.

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