Hi guys,
Currently I am paper trading a trend-based strategy that goes fine as long as there is a clear trend.
As soon as the trend becomes a ‘bumpy road’, going into a wobbly non-directional state, my strategy is ‘out of sync’ with the charts and I am facing losses.
- Is there any way to estimate if a trend is up for reversal vs going into non-directionality, or you can estimate if a bumpy road is likely to breakout versus forming another ‘bump’ in the road?
I know there is never a way to 100% sure say if a trend or balance will be formed, but it would help to know if for example there is e.g. some certainty on waves in which currency indices move. - For example: is there something like ‘USD index tends to move on average 2 weeks in directional way, then halting for about 2 weeks’…
- For those of you who trade a trend-based strategy, do you just stay out when indices show no clear directionality?
Many thanks in advance!