How to identify trends vs range

how to know the difference between trend and range while indicators give false trend signals

Hellooooo @abdelrahmanelkady! :smiley: Have you tried checking out the school of pipsology here? :blush: You might find it helpful, especially for questions like this. :slight_smile: It’s pretty detailed but the language is not super technical. :stuck_out_tongue:

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U can use bollinger bands,
If lower and upper shrink it indicates range market

Or u can view bigger timeframe

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Chart time will help you to master what a trending market looks like and what a ranging market looks like…this is a tough question to answer without visuals. Range is basically when price action trades within a certain # of pips it could be 5 pips it could be 50 pips it just all depends on your time frame you are trading on

Start with the strategy and work back. The strategy will inform you how to analyse the price action. So, my reason for identifying trends is in order to follow them. I don’t try to define ranges as I don’t trade them.

My main identifier for whether price is in a trend would be the sequence of 3 suitable EMA’s. If the 20, 50 and 200EMA’s are in that sequence from highest to lowest, price could be in an uptrend that is worth me trading. If for example, the 50 is above the 20, I would ignore this price set-up for an uptrend-following trade at this time. Whether I actually go ahead and put a trade on this market is a much more involved question.

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