Hello Guys,
I'm a beginner trader from Europe and I've been trying to learn forex for some time now.
I've gone trough the very good PDF that can be bought from this site and I've been building up my strategy mostly using custom trendlines, moving averages, fibonacci technique and a stochastic oscillator, etc. I managed to get to a point where I never miss a decent movement. However... I have a problem that my strategy is not very good or rather very bad when there's sideways market or not much trending movement so I hit a tremendous amount of whipsaws because of this issue.
For the last few weeks I spent by trying to find ways to filter out sideways market conditions. I tried to use boilinger bands first, then a shi-channel breakout-type approach - no luck. Then I went for the Demark trendlines, maybe that would work - but no way.
Is there any decent way to filter for sideways market?
On another website, I've found this:
Quote:
The relationshp between the ADX & ADXR and the relationship between ADX
and PDI & MDI is in my experience a good way to filter out non-trending
issues/markets.
For a market to be trending one of the two conditions have to be met.
1. ADX is greater than ADXR
2. ADX is between PDI & MDI
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Well... I don't know, it may be true. But I'm using MetaTrader 4, and I don't have this ADXR, PDI or MDI indicator (I have only ADX as far as I can tell) so I cannot confirm or deny. Even so... this description is too vague for me at my stage. (Yeah. I'm green, I know...)
Anyone has a good idea or a method about this? I'd really appreciate any response...