Hi i need help to filter consolidation periods with any indicator, on the M15 (15 min) chart.Please give me any indicator that can filter the consolidation periods, especially those with low volume ,not the ranging ones but just the ones seen before LONDON OPEN.
Now you can say that, not to trade before london open or after ny close.Thats not the case, and neither the solution.Many times the market is in good shape even before the major stock markets open so there should be a non stop trading period, because i will use my EA anyway to trade so thats no problem.
But because sometimes there is very low volume or price just halts nearby a major S/R level the solution would be an indicator which can help me, and my BOT to not trade at these situations.What i need is any indicator that can filter it out, with preconfigured/optimized or atleast at decent settings working at M15 timeframe.
Also the ATR indicator is good for this job, but if anyone could help me what settings are good for M15, that that help would be also appreciated.Please help me quick, thanks! :53:
You might want to check today range compared to the average daily range. To do this first use TF D1 on the pair you want to trade, then set ATR to 20. That way you’ll have average daily range within the last 20 days. Next thing is check today range, it’s easy just check today high-low on D1 and you have it, if it’s too low (below 20 pips) then it means it’s very slow session.
You might want to check also if there’s major news during Asia session, it will help greatly in boosting volatility.
Sorry i dont understand you.What daily range do you mean and how can a range be “below 20 pips”.The ATR indicator is in a separate window, what levels to look for? And how does 20 day average affect an M15 chart, it seems pretty silly to me, what i asked was some clear ATR settings for an M15 chart only, there is no reason to go higher than that i believe so please give me a setting for M15.
Or any other indicator that filters consolidation is good too, but with preconfigured settings preferably.Thanks!
You’re trading on M15 so I assume you’re trading intraday since you want to filter the consolidation on m15.
So first you have to know the average daily range which can be found easily by setting ATR 20 on D1. Do you know why? Because each candle on D1 represent 1 day, so the ATR show you average height of candles within the last 20 days. Now what does it have to do with m15?
Basically before you switch to m15 you want to compare today range to the average. How? Well just check current candle on D1 and see range between current high and low, you got today range.
For example today London just open, let’s say ATR on GBP/USD TF D1 shows 0.0106 (my broker is FBS), it means the average candle height or daily range in this last 20 days is 106 pips, now check the height of current candle, it is currently 47 pips. It means today range has reached 47% of the average, which is pretty high in my opinion.
I said earlier 20 pips is too low, that’s because I was assuming GBP/USD with 100 pips average daily range. 20 pips means 20% of the range so it means there’s no significant move in the market just yet.
If current candle on D1 has moved more than 30% (+40% is preferred I believe) of the average then you can assume there’s enough volatility to make some profit, then you can switch to m15 chart and look for entry.
I try to make it as simple as possible, hope you understand this
ps. average range whether it’s daily, weekly or monthly is very important part in my analysis, particularly the daily range.
Thanks for the advice but let me clear up a few things:
Yes i trade intraday and i close all positions before 0:00 no matter what (i dont like the swap system)
Still i dont get it why you need so much information from the past to determine the future, for your example ATR (20) on D1.A consolidation may last a half day(it depends how drastic we want to filter price), but usually its 10-15 candles *M15 thats about 3 hours (and its not always before the stock markets open, so i dont want to NOT trade before the London open just because its before london open,because on many occasions there is a nice trend left from previous day that must be traded), So a consolidation may last on average 3-4 hours thats 1/6 of a day so i believe we have to put our indicators too,to intraday values, maybe 2 days at maximum but no more.So i find 20 day ATR a bit ridiculous since in 20 days market behavior (on M15) changes a billion time.
Please i need a more flexible settings that can follow price better
I also like to trade consolidations on a 15 min timeframe and looking at different ways of looking at this, I did think what about purely just looking at the daily trend and only trading in this direction? Or wait for a daily candle that’s engulfing a precious for example?
Or maybe look at 1 hour 4hour and daily to see any hints about what could happen then drop down to the 15 and trade the consolidation then?
Atr to me is just a price range the only way I think this is super helpful is stops or of a candle is very big compared to the atr
Would like to chat about how you trade consolidation more
