I have one setup which is a trending setup that I feel pretty comfortable with, and I am looking into another trading setup. I would like to be able to trade the ranging markets but all of a sudden I become a bit insecure about how to do this;
In the textbook it is ok - price bounces between two S/R-levels and you can catch the moves between them. But when I look for these ranges, if I wait to see price bounce between levels several time to “establish” a range, then I am too late because price is usually finished accumulating/distributing and starts ranging again.
Does anyone have any helpful tips to help me establish these ranges quicker?
What you’ve outlined above is basically the underlying “challenge” with trading, and no single one post is going to establish a certain answer to your question - no matter how much a trumpet is blown.
The answer, quite frankly, comes down to vast experience via combining not only short term time frames with the longer, but also by being able to establish what price levels should be considered as significant - it’s these levels that will signify a break of a range and therefore a move into trending market from a ranging market.
What I would suggest is to list all the times you see such occurrences where you feel a market moves from range-bound to trend-bound.
Look at why, change the time frame and look at the bigger picture, you’ll soon star to see a correlation. It wont be black and white, but it will at least give you an insight into what viarances to look for when trading in real time.
…yes the above answer is also very “grey” - but i know what I look for, so, you should learn that too. It’s more valuable learning the answer to a question as opposed to being given the answer straight away, right?
Yea thanks for the input. It is just that I have little problems catching trends with higher highs/higher lows and vice verca, so I thought this would be easier too. You are on point, I will keep reading charts and see if I can see a system in there somewhere. I am happy to receive additional input if you have any, but I am confident I will make sense of it soon. Many hurdles behind me, many hurdles to go.
My current setup feels great but it is pretty rare that I come across it so it would be awesome to master the ranges too.
Thanks again.
Edit: I did not mean that I fully “master” trend-trading, just meant that I have got the hang of one little part of it. Would not dare to say that!
Don’t worry - anyone that tells you that they know it 100% is simply a mug, these markets are dynamic and change all the time, just like we should adapt and learn also.
I agree with markets structure, but…how does one explore order flow in a decentralized market such as that of FX, it’s not possible - unless looking at options
not all youtube videos are like that friend. many of them are quite educational, just so long as they’re not coming from someone selling something. I’d list some of those channels here but I’m not sure it’s allowed by forum rules. several interviews with Linda Raschke for example have been very helpful to my learning.
John Bollinger’s book on bollinger bands discussing the bollinger band squeeze and breakout concept very thoroughly. basically low volatility (range compression) leads to high volatility (expansion).
