#1 Range-bound trading (50 SMA angle)
Submitted by Edward Revy on December 17, 2009 - 17:40.
One of the methods to detect a range-bound market is by looking at the angle of the Moving average.
If, for example, our Moving average (MA) is rising fast - the angle of the MA line on the chart will get steeper and steeper.
Already at this early stage we can make a conclusion: if the angle of the Moving average is rising – the trend is getting stronger. If the angle is dropping – the trend is getting weaker.
If the angle of the moving average is insignificant, close to flat or is flat – we know that the market has entered its sideways mode.
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Hi Babatunde,
both of your questions are too general, anyway the answer can be narrowed down to the following:
a trend is either visible, or there is no trend.
If you open any chart, just zoom it out a bit and what you will see is a direction in which the market is heading (could be UP, could be DOWN, and could be SIDEWAYS). As primitive as it sounds, that the best measure of a trend.
Here, in this range bound trading section, we talk about using various indicators & tools to help us judge about presence/absence of a trend.
If you're looking to find more sophisticated range/trend indicators, try also looking among MT4 custom indicators offered on various Forex forums.
Kind regards,
Edward
Thanks for the info.
Jam
fantastic
Hi Edward,
It's one of the best site for beginner, so far I've found. Thanks for it. I'm a beginner, doing demo trading for last one month and starting to get positive result only after using few strategies I've found here.
I wonder, whether you'll provide us with the update of Manus168's technique of ATR and standard deviation to spot ranging/trending market. Because spotting market environment is also important.
Edward,thank you for all work of your team.You are great guys.
Try look this one for detect the healty trends :
http://www.hectortrader.com/coursechapter1.php
Regards;
Manus168
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