Range Trading - page 2
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Indeed, it does happen pretty rarely, but if you already have other strategies, that should be fine. No one wants to over trade... The idea is to eventually develop more than 1 range trading strategy that work good. But since no one has mentioned their interest in range trading, maybe this thread is not worth it?
Again, if anyone is interested in sharing range trading ideas, please say so. Thank you.
Now for the new rules I established after having looked at many signals.
1) a)SMA has got to have passed through both parts of the keltner channel
OR
b) one of the candles straight prior to signal has got to have broken a candle that has recently broken out of the keltner channel (close of candle higher than KC if a sell) and close of this candle has to be higher than any wick.
2) Stop-loss for the moment would be length of keltner channel at time of previous candle + 10 pips.
3)if signal comes straight after news (which I have seen profitable many times), a trailing stop should be used.
IMPORTANT : all calculations for entry and SL is based on the time of previous candle.
Fxbs, regarding the examples you have posted, only 2 signals, one on each of your charts are valid, and both go to profit.
Heres the trade I got last week with the AUD, not a big winner, but then again, its a range trade. Some will be bigger.
how do you pick your bottoms?
It can trend past the keltners..The market slows causing the ma to move up but there still needs to be a confirmation of the turn.
just a thought.
for me, the fact that the ema and sma are tangled in the keltner means that there is a range trade to be made, that there is market indecision or neutrality ( that price will go back to where it was before). Ive noticed it in history. The sma cross rule I have implemented is because sometimes the sma just barely crosses the keltner (as price slows down as you say) and price keeps on going in trend right after, Im trying to avoid those times to trade a range.
How do I pick my bottoms? The second it touches back the keltner Im in, as long as SMA and EMA were tangled at time of previous candle. Other than the rules I stated, there are no other detail I use to confirm entry. If I didnt answer your question, Im sorry, please explain in more detail. Cheers
Anyone has a range trading idea ? Dont hesitate to share on this thread ! Happy trading everyone !
here are important new exit rules that I recommend :
after candle close breaks out of first keltner line, you have 4 candles to break out of next KC line
after middle line is broken by a candle close, price has 4 candles to hit final target.
if at the end of the fourth candle, the line is not broken, price stalls too much, get out !
Here is todays trade which illustrates perfectly this. As you can see, I closed the trade after the 4rth candle after 1st line BO occured
Of course, if you wish, you can stay in the trade and not follow these, but I have seen over and over again the price go against you or stall too long if lines are not broken fast enough.
If you stay in, tighten you SL, at least.
good trading!
I am developing another interesting range trading strategy, but since there seems to be just about no interest, I will probably pass on sharing it.