What are the ways to deal with flat trends? Any suggestions?
what you think Mate its a appropriate place to discuss about flat trends? by the way , welcome to this community
When price is going sideways it takes a very skilled trader to make a profit from the limited volatility as price ranges between highs and lows. This is specialist work and it demands quick reactions, strong discipline, the emotional ability to endure many losing trades and narrow spreads and fast execution from the broker.
Making money from a trend is much easier.
Many times the market is in a range. From that range the price became volatile. Then no specific movement can be understood. At that time it is possible to trade with the trend in that range, but you have to manage the trade.
Completely agree with this. Price whipsawing is difficult to navigate
Just don’t trade it. They’re three positions in trading. Buy, sell, and no position. 80% of trading is waiting on a good entry and setup.
Depending on how tight the range is, you can trade it. Usually means more opportunities for a entry.
I don’t know your experience level. If you’re quite new at trading I would advise not to jump into trading a range. Higher probability to make money in a trending market.
Just be a patient. Trades will come around. Don’t lose your hard earned money on taking bad setups.
If you have a demo account you can practice trading a breakout strategy on a pair that is consolidating.
I don’t trade breakouts. I wait for it to come back and retest a zone.
Haha. This is what I was doing as the consolidation started. I didn’t realise it at the beginning.
I think at times we all have. Weather you’re just starting out or have even been trading for a bit.
I was EXPECTING a clean bounce. And when that didn’t happen, I kept jumping in trying to guess if it was trying to bounce or break thru that support. I wasn’t until after two or three losses I realized what was happening.
I have to think about how to be prepared for the unexpected.
Staying out is one option.
First you need to identify them. Then you can avoid them or use a mean reversion strategy. I personally use MAVG to identify trends or ranges. Can be as simple as the angle of the line. If its flat across then its most likely ranging. This isnt how I do it but its better than nothing.
Were there any particular pairs you were looking at that was in consolidation?
A robust trading strategy by it’s nature will automatically keep you out of flat trends or ‘no where prices’, to quote the late Jesse Livermore
Any type of breakout system should do the trick.
I would like to know that too … nice question