Can you profit in a ranging market? -
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thread: Can you profit in a ranging market?

  1. #11
    Senior Member Strikersipk's Avatar
    201
    I changed the settings on RSI to 6 periods, and changed the overbought/oversold levels to 50. It appears to work pretty well so far searching for a sign in the cross of the 50 line with a MACD cross also. It feels weird typing this material because I have always had such a bad feeling of indiors. They certainly seem to work better through a silent, ranging market, together with MTF and S/R.

    That I think that it's interesting that although MACD started crossing up at the base of the station on the 30 sec, while the 5M price was in the base of the station and oversold, RSI kept us from some lousy trade/exit.

  2. #12
    Junior Member santim93's Avatar
    8
    Maybe the idea of going long at the bottom of the range in an uptrend, shooting half off at the other end of the range (SL to BE), also repliing every time price gave a signal off the underside, and holding in anticipation of a breakout could be a egy
    I like that idea a lot as it means you'll be caught out accepting profit and closing all positions just before a wonderful breakout. Good one. Price action at the channel line should provide a fantastic signal with a small pause, or ofcourse you could just jump in with a commerce the other way when it strikes the line. It appears a lot of the time price will move immediately away from line prior to getting a fantastic signal but in the event that you can tuneup your own indis to accomplish this have to be good. Nice poem incidentally, but don't quit the day job


    Oh yeah, as you touched on in other thread, what are you thoughts for determining if a range has started? It's not easy to distinguish between start of a range along with a trend change or such like. I guess price much touch a line 3 occasions to be considered a support/res price so perhaps same rules for range. Problem with this is a range may just have 3 rolls on each side before a break out making trading that range hopeless before it's gone!

  3. #13
    Senior Member Strikersipk's Avatar
    201
    I like that idea a lot as it means you will be caught out taking profit and final all positions just before a nice breakout. Good one. Price action in the channel line should give a fantastic sign with a slight pause, or ofcourse you could jump in with a commerce the opposite way when it strikes the line. It appears a lot of the time price will probably move quickly away from line prior to getting a fantastic sign but in the event that you can tuneup your own indis to do so have to be good. Nice poem by the way, but do not quit the day job


    Oh yeah, since you touched on in other...
    Hey buddy I don't have an excessive amount of time but I'd like to say for the start of the range I believe I will be looking at time daily and news coming out, then 1H S/R and seeing how price/BB responds. . .gotta go!

  4. #14
    Junior Member santim93's Avatar
    8
    Hey,
    News events - yes really good idea particularly when price is waiting to decide which way it's likely to go based on what the news says. So ranges need to often/sometimes form before big news?

  5. #15
    Senior Member Strikersipk's Avatar
    201
    Well I'm not sure but from my own observations I have noticed that the more traders are expecting some news, such as NFP a week or two FOMC yesterday, the more the market will range going into it.

    When London closes, eurusd requires a few hours to end up and will generally range until Tokyo gets rolling, so that is exactly what I mean by time of the day.

    I would imagine that there would be a range prior to each market opens, but they would probably have different characteristics.

    At 8:30 EST now we've got trade balance coming out and that is the only piece of advice for two hours until we get crude oil inventories, then at 2:30 we possess the federal budget coming out.

    It'll be interesting to see what occurs now.

    If the data is all in agreement (all positive or negative for USD) perhaps we can see some continuing movement in 1 direction.

    If the data is conflicting, maybe we can see some chop?

    And what about our idea about markets that range while awaiting news? Since we have three bits of news spread out so much does that mean that the market has lots of time to await the news and therefore lots of time to range?

    I believe also that we should keep your eye on commodities and equity markets now, as I guess these can help us gauge the market climate.

  6. #16
    Junior Member santim93's Avatar
    8
    I love how you're coming this obviously news informs the institutions which produce the market go so it makes sense to see news when searching for and expecting the formation of tendencies and periods of consolidation. I have not been into news previously as I mentioned but would love to find a chart of todays price action marked up with if news came out so that we could see any impact which releases could have had?

    Dead instances from the market (outside london and NY) are very interesting in terms of range phases there's defo scope to get a scalping egy there but I have not looked into these times . For sure SL's are significant tho because very flat can turn very abruptly outside busy periods. I always try to see gld and oil for correlation as they can pull and push pairs around sometimes just with a few key pips. Gotkindly go walk the dog today keep em peeled!

  7. #17
    Senior Member Strikersipk's Avatar
    201
    I like the way you're coming this clearly news informs the associations that produce the market go so it is reasonable to see news when looking for and expecting the formation of trends and periods of consolidation. I have not been into news previously as I mentioned but would really like to see a chart of todays price action marked up with when news came out so we could observe any impact that releases could have had?

    Dead times from the market (outside london and NY) are extremely interesting concerning range phases there is defo scope to get a scalping egy there...
    Wow there's so much material we must cover. Let us do this.

  8. #18
    Senior Member Strikersipk's Avatar
    201
    followup on the wedge

  9. #19
    Senior Member Strikersipk's Avatar
    201
    A surprisingly negative trade balance came out now at 8:30 and price pushed through eurusd bull stops.

    Equity markets in the US panicked on the information and need for USD surged pushing eurusd down.

  10. #20
    Junior Member santim93's Avatar
    8
    Ever heard the expression'no news is good news' well that surely doesn't seem to apply in the area of Foreign Exchange!

    Frank when you state inventories panicked and need for USD jumped does that imply there was a market off on wall st and the cash put into buying usd as a safe haven? Sounds sensible. If that's true would be a temp 24hr item or will this price now'grip'. Or will the need for usd persist for a couple of days?

    Clearly this pair has two sides so is there a european equivalent of NFP etc that has a similar influence on the pair?

    Additionally when you mention that the bulls stops being taken out is that visible in price action around certain levels or are we just reminding ourselves that's what's going on? I'm learning a lot from the threads here hope I could be of some help back. I'm no pro but been messing around for long enough to begin earning a few pips within this game.

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