Hi,
I am developing a grid-based EA and I am looking for indicators to help me enter the market during non-trending (at least, not strongly) spans of time.
The perfect situation for my EA to enter would be when the market is oscillating between two points but not breaking out through them.
If the price does break through one of the points (say, point A), I’d like some way to determine if it is going to retrace back to point B or if it will leave the zone of oscillation for good.
At the moment I am using only one indicator; Alligator. I only enter the market when the jaws are closed; that should signal that no strong trending is occurring (or am I wrong about that?).
I would like another indicator to confirm that the market is sideways… or better yet an indicator that would tell me between which points oscillation is occurring and how strong those pivot points are.
I did a little bit of research on the indicators listed at forexrealm (it is a pretty big list)
The following indicators caught my eye as potentially useful for my purposes: Shaff Trend Cycle (similar to MACD) CP Volumetric Trend (responds to deviation in volume from standard; grows at turning points) Linear Regression Trendline Range Indicator
What do you guys think - do any of those indicators make sense to use? Got any favorites that would suit this purpose?
I’m not much of an indicator user but here’s my two cents:
When a market ranges it goes up, down, up down up down between a certain level. Playing the bollinger bounce game works well in this scenario. Look for short orders when PA is near the top BB, look for long orders when PA is near the lower BB.
Word of advice though, don’t use this indicator alone. It helps in the ranging market but is not enough to help with specific entries. For that, relying on candlestick formations/patterns is something that can be very useful in tandem with the BBs.
Might wanna edit that link to the name of the site only, as to not break forum rules. You are under 50 posts, and likely to get an infraction notice if you don’t.
As for your dilemma, there are no indicators that are going be consistent enough for your needs that I know of.
Several factors get in the way. Time frames being key. What is a down trend on the hourly, could be in a long term range on the daily, and it would skew the indicator’s results enough to take away reliability.
Hmm, I thought of using bollinger bands before, but I assumed that I would want to enter when the bands are close together; like the Alligator indicator. Perhaps you are correct though because I can see how you can use BB to track oscillating prices.
Perhaps it is worth mentioning that when I enter the market I simultaneously place a buy limit and a sell limit around the price. Then when one of the limits is triggered, I delete the other one.
Well then perhaps I can use the same indicator on multiple time frames to avoid this. I don’t need 100% certainty - just something to sway the odds in my favor.
I can program my own indicator too if we can come up with the basic logic for it.
would you by any chance trade Asian session only?
how about setting trade time restriction for that purpose.
another idea try S&r indicators if it keeps bouncing between S&R it is ranging and the if it breaks one of them it could be your exit signal!!
I’m developing a trend based EA and I need to filter out the ranging movement … 2 diff goals but same tool lol
one indi I use is TDI (trader dynamic index)
What is the purpose of trading during the Asian session only? Do trends form rarely at this time?
I was considering restricting the trade time… I just don’t know what to allow and what to disallow. On another forum I recently read a post that stated “Price reversals usually happen during the first 2-3 hr of the opening of London trading time.” Another person wrote that reversals happen “when the European market closes down for a few hours after the US market opens.”
Price reversals are not necessarily unidirectional trends though; The security could be oscillating between A and B (reversing when it gets to either one). It could also be that the reversal won’t retrace back to the initial region of oscillation.
… I think
I definitely think S&R indicators would be a huge help. Do you have any favorites?
I have been using a 3 SMA indicator to spot trends so I guess it could be used inversely. It is a 30/50/100 SMA indicator, when the bars are below the 30 bouncing in a wave off of it and all lines are in order, evenly spaced and parallel then that is a good trend. When the bars go through to the 50 line then the trend is weakening and if it stays and proceeds to the 100 line then the trend is done for now. This is in a bear market btw, in a bull market just flip the lines and they are below the bars. I am new to this indicator but I like it so far for trends and you can see when the trend is over with it.
no trend in Asian session!!!
limiting the trade time is good( what time did you usually trade using the system?), for trend based system London and early NY is good but deff not Asian … at least for me.
the only indi I use for S&R is TROsupresHHLL there is another but called Berry S&R.
