Hi to all forex traders. I am developing a system and trying to find a indicator which would help me identify if market is rangeing or not. Some ideas which is the best?
do one thing at a time, and do well.
you are in newbies place, do you think that this is the place to ask theis question?
go to more experienced group, you’ll get more luck there.
cheers
The best possible ranging indicator is sitting on top of your shoulders. Train it and use it.
For automation purposes, I would suggest that manual control of when the robot trades is better than relying on an indicator.
Agreed, I was trying to find the answer to this for the longest time…
Then I realized… I had a brain… Haha…
One man’s trend is another man’s range 
don’t waste your time trying to find an indicator for such task…
I use zigzag to help my brain to figure out if the market is trending or ranging… of course zigzag lags and repaints…it just tells you about the past…
It really sounds philosophical, EVEN thought it’s not :59:
but nice
I may be wrong here, but it’s either elder or van tharp have written a book or two discussing the criteria they use to determine a “bull trend” a “bear trend” and a “rangeing” market.
start with van tharp. read super trader…and then his other most popular book (i think published before supertrader)
then if that doesn’t help, move to alexander elder… but, i’m pretty sure it’s van tharp
anyway, he basically takes a historical chart of the S&P, and calculates the range of each day, as well as the distance moved up or down, for a period of time, over a very very long daily chart (30+ years i think)
he then gets an average volatiility in terms of points, as well as average movement up or down. again…not sure exactly, it’s been a while since i read it, and i don’t use it really myself.
BUt, anyway, once he gets this average, he knows if the market is moving up more than X amount historically. this is a bull market. he also checkson volatility. is it volatile, or steady.
Anyway, google this, or develop and test some ideas yourself in terms of rate of change over time, and distance.
good luck.
Jay
Thanks jay for recommendations, I will read this and see if it’s helpful