Need an Indicator That Isolates SIDEWAYS Market. - page 3
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it looks like trend band to me
No, it is based on Hi/Lo ... like dochian channels...
it is all experimental...
I promise I will post this indicator, but I must work on it some while...
THNX
Raff
Good work Raff, it looks like a promising indicator.
No, it is based on Hi/Lo ... like dochian channels...
it is all experimental...
I promise I will post this indicator, but I must work on it some while...
THNX
RaffGood work Raff, it looks like a promising indicator.
Hmm... Only when trend is strong, and market consolidation is clear... Some other time it is hard to say what to do - sell, buy or stay out of trouble...
THNX
Raff
your problem is as old as the stock markets started...if you can find an indicator that tells you the difference between a ranging and a trend market (wich is not lagging or AFTER the facts) you will become a billionare.... regards...iGoR
True .. here is the fact.
Many indicators can paint a picture of the market you have been in but none can tell you what is next. It does not exist. If you are in a ranging market no indicator can tell you the next price move starts the next trend. It does not exist. If you are in a trend, no indicator can tell you the next price move is not the beginning of a sideways trend.
If your trading system depends on this type of indicator, look for a different trading system or start thinking differently about your current system. What do I mean think differently, look for ways to take advantage of both trending and ranging markets. For example, if your system is trend based and you get chopped up in ranging markets you could try this:
1. Wait longer, use stop orders, or look for additional events before entering a trade. This will mean fewer pips but likely a higher profit percentage. As you increase your winning percentage you can increase your position size.
or
2. Don't close a losing position when you get a reverse signal until you break outside of the range. How do you do this? Use any trend indicator. When the range does break, then you can close losing trades. This gets you chopped only once. It might be a little bit larger loss than a single chop but better than 2 or 3 days of ranging losses.
My point is this - don't look for an indicator that does not exist. Think about it, if it did exist the market would change to kill it. Instead, work on what is possible.
My point is this - don't look for an indicator that does not exist. Think about it, if it did exist the market would change to kill it. Instead, work on what is possible.
Hmm.. I agree with most of your post, but the "market would change to kill it" part caught me off guard.
I must respectfully disagree.
Let me make my case, if I may. Forgive me if I am about to beat a dead horse, it is not my intention.
Your statement presupposes that "if it is a good idea, everyone would do it". That is certainly not the case, as it is counter intuitive to proven human nature. Not everyone will choose the same strategy. I submit the simple habit of smoking - terrible for your body, but so many people do it. Another example - I'm overweight - I should slim down, but I haven't yet. Why? Most probably because I'm stupid, and will greatly regret my decisions later in life, but they are still my current stupid decisions.
But, anyway, besides that point, I think that there are further, more specific reasons why I don't believe your statement is true for the Forex Market.
Foreign currency exchange was made for much larger reasons than you and I (meaning traders). In a largely globalized economy, it is the billions of OTHER people who have an actual need of foreign currency, that really make the market. It is my belief that the the MAIN flow of currency exchange is not based upon what traders do, but rather upon what all OTHER markets are doing. Currency trade is an expression of those markets.
Traders attempt to take advantage of this flow, and indeed can influence it greatly (because, overall they are part of the mechanism of trade), but I don't believe that they can derail the actual flow or trend. Especially since "ghost" traders like us don't care if things are going up or down. We just want them to move. The money we extract from the system is a price of doing business for all the other people who actually NEED the system.
If the opposite were true, all fundamental things like interest rate hikes, employment rates, wars, etc. wouldn't make a difference to us - but, of course, they do.
Anyway, I've said my piece. If it was a dead horse, I again apologize. In that unfortunate event, my hope then is that I didn't flog it long enough for the stench to be unbearable.
Now, I will
Best regards,
Cubesteak
The best way to filter sideways moves is to filter hours depending on the pair you are trading and drawing horizontal lines to make static channels.
At least that works for me.
Most moves start at news time, acording to the pair you are trading, and when price moves outside its range you've got a trend...
You could use a simple oscillator to define entry points, stochastic maybe...
The best indicator for spoting a range-bound market is your EYEBALLS, people. Geez. Indicators indicators indicators. Trading is not NEARLY as complex as the indicator whores make it out to be. Trendlines, candle patterns, and knowing what time of day to trade is all you need. Everything else is just painting a pretty picture of what has already happened. If you've mastered a few simple candle patterns and manage your money well (i.e. small stop, bigger TP), you're fine. You don't NEED any other indicator in the world. Sheesh. Sometimes I feel like you guys are all taking "crazy" pills.
The best indicator for spoting a range-bound market is your EYEBALLS, people. Geez. Indicators indicators indicators. Trading is not NEARLY as complex as the indicator whores make it out to be. Trendlines, candle patterns, and knowing what time of day to trade is all you need. Everything else is just painting a pretty picture of what has already happened. If you've mastered a few simple candle patterns and manage your money well (i.e. small stop, bigger TP), you're fine. You don't NEED any other indicator in the world. Sheesh. Sometimes I feel like you guys are all taking "crazy" pills.
It can seem a bit hectec sometimes to be sure, and I for one would love to hear you expound further upon what you use - but, please don't forget that Newdigital can be quoted many times as saying that this forum is for developing trading systems based on technical analysis. Just look at all the subforum topics...
For example one of the things that is heavily covered here is MT automation, which of course requires indicators for the input.
AND, you also happen to be posting in the MT4 Indicators subforum.
So, don't be surprised if you find a lot of that kind of talk around here.
No crazy pills, just a lot of intellectual discussion.
Anyway, I would like to humbly repeat my request that you post a description of how you trade in the Manual System subforum. I know I could learn a lot from it... Thanks very much in advance.
Cheers,
Cubesteak
A macd histogram is an excellent indicator of sideways market.... the depiction of the difference of two moving averages....
An excellent idea to spend the time to identify a few candlestick patterns as they are most useful.....
Woodie has prepared the Chop Zone indicator which is available for Metatrader.
Because the market is in chop a lot of the time...... perhaps is best to learn to identify indicators which would show the direction of a breakout.
Using Shi_Channel
Hi Guys
I has an idea to determine market pattern. How about we manipulate the script of shi_channel. The indicator shows channel size and slope. From this value.. we can separate the pattern with color like this
1. channel size < 30 and slope between 0 to 10 (purple line) =flat market
2. channel size < 30 to 45 and slope between 0-25 ( green color )= choppy market
3. channel size > 45 and slope > 25 ( red color) = trending market
JUST A LITTLE IDEA