Hello traders. I trade EUR/JPY and am a swing trader and for a week now it’s been ranging and I have lost all my trades. So i was wondering if there’s a way of identifying a ranging market without lagging too much to miss out on the good moves. I was using the ADX. Thanks
If you truly want to reap much gain from the market, you have to capture the ranging market.
You can try to use other oscillators
Use trend lines, Bollinger bands, Moving average and other indicators to identify the ranging market
Try to identify the marker trend by using trend lines, moving average and bollinger bands.
First of all, ensure that you have sufficient knowledge of trading before diving into real account. Majority of the traders commit this mistake and they are also suffering much for this issue.
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Capturing the market range is the most difficult job to do. Use trend lines and moving average to do so.
A useful clue (not a DNA identification) is to check how many higher time frame bars overlap. I trade off daily charts but I look at the weekly charts for this.
We have just completed Week 5 of 2023: looking at the EUR/JPY weekly chart now and you will see that the last 7 weekly bars’ ranges overlap. This doesn’t mean price is ranging but it would be very odd to see trending price overlapping 7 weekly bars. I don’t usually take trend-following trades if the overlap is 5 or more. The last time we had only a 4 weekly bar overlap on this pair’s chart was during of Week 2: the overlap rose to 5 on the Friday of Week 3, 13/01.
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Did you complete Pipsology?
Pipsology gives a lot of information about ranging markets.
I reckon best way to learn is by one’s own observation.All markets range some more than others .Looking at several charts and identifying ranges, especially Day or maybe 4 hours timescale.
It would be useful to research support and resistance.
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PS: With 28 significant pairs to pick from plus 3 major US indices plus 3 major European indices plus 3 or 4 major commodities, EUR/JPY is an odd selection to trade.
Does your TA allows you to rank and prioritise your potential targets’ charts?
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Try to capture the market range because it will give you a guidance on which side you should take an entry.
Identify the market trend by using trend lines, moving average, stokistic, RSI and Bollinger bands.
for me the easiest way is to look at the 20-50-200 MA’s
if your price is trapped between MA’s, you are ranging
to be trending you need the MA’s aligned sloping up or down but all in the same direction
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If you want something more deterministic than what’s being offered here, try one of the squeeze momentum scripts on TradingView. If it’s in a squeeze get out, it’s ranging. If you see a release get in. This one below is a good one. I believe TOS also has this indicator. Lots of videos on YouTube on how to interpret and use it.
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