Range trading - page 2

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Jean Francois Le Bas:

what ? it's well known that market ranges most of the time. We can measure it with ADX.

a ranging market is a market where oscillators are profitable, a trending market is a market where price goes strongly in one direction and MA is the indicator of choice.

MAs don't work in a ranging market because they are too late, and oscillators don't work in a ranging market because the reversing signal is then wrong

this is trading 101, and most traders agree to that.


Jeff

Well known, really ? It should be simple to answer my questions then.

Most traders are not profitable.

Is this a trending or ranging market ?


 
Alain Verleyen:

Well known, really ? It should be simple to answer my questions then.

Most traders are not profitable.

Is this a trending or ranging market ?


I think there is short-term and long-term trends. A trend on M1 might also be a range on H1. Saying that the market ranges 80% of the time is kinda naive. Don't you think?

 
Nelson Wanyama:

I think there is short-term and long-term trends. A trend on M1 might also be a range on H1. Saying that the market ranges 80% of the time is kinda naive. Don't you think?

It's not only naïve, it just doesn't make sense. "The" market, what market ? as if all markets were the same. "Ranges" what is a range ? is there any universal definition about this ? If yes please share it, if not how could you say such things as "market ranges" without any distinction ? "80% of the time" on which bases ? OHLC ? then which timeframes, all of them ?

Same "market" as previous screenshot (between green lines). For me it's clearly a trending market on H1. But on M15 it's a different matter.


If you want to code an EA for ranging market, the first task is to defined "ranging".

 
I think that the idea of trading inside the range without attention to the trend will not create a profitable strategy. There is a lot of chaos and few patterns in the market. A trend is a pattern. But the price entering and exiting the range is not. Levels also exist. The price stays between the levels longer and crosses them less often. But at what time the price will cross the level we do not know, unfortunately.
As a result, we have two strategies: on the trend and against.
Isn't it?

 
Keith Watford:

You are contradicting yourself.

typo

i meant trending

 
Alain Verleyen:

Well known, really ? It should be simple to answer my questions then.

Most traders are not profitable.

Is this a trending or ranging market ?


it depends on the zoom used. you can consider a ranging market as a trending market if you zoom in for example

but if you keep the same period for quite some time, you can define ranging and trending markets

 

I just try to trade in ranging market... Just scalp in the quiet market session...

Sell High, Buy Low... Wish me luck... :D

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