Results 1 to 9 of 9
  1. #1
    Rookie Member outfox's Avatar

    Post How to Detect Range Movements? !!!

    Hi everyone.

    I am trying BOGDAN's 3 Bar High and Low in Demo due to its simplicity. I also added Megatrend + MACD + 4h chart as confirmation (I don't know if adding these indicators are redundant, but I feel secure to trade when both the Trendwinner and megatrend have same colors). My problem is since this strategy works only in a trend, how can I detect early if I am about to enter a ranging price movement?

    1) Should I use MACD? (Correct me if I am wrong) Is it when the histograms is just fluctuating on the zero line?
    2) And if not MACD; what other indicators, procedure, or signs should I look for? Which will tell me that I am about to enter a range movement.
    3) What if the indicator/s is lagging? It only means I am already in ranging prize movement which defeats the purpose of early detection.

    Any comment, advice, feedback and correction is highly appreciated. Thanks in advance.

  2. #2
    Legendry Member Michael Hodges's Avatar
    That's tricky but MACD or stochastic, or any oscillator can help, but there are no guarantees. A divergence is one indicator a trend is about to end or at least pause.

  3. #3
    Rookie Member outfox's Avatar
    I see. I need to go back and review the divergence article. Thanks.

  4. #4
    Moderator Kolyo's Avatar
    It is better to read it twice before testing the indicator. There are some specific tricks that need to be done before. If you have any questions of course you can ask here
    "The goal of a successful trader is to make the best trades. Money is secondary." - Alexander Elder

  5. #5
    Master Member Bogdan G's Avatar
    Quote Originally Posted by outfox View Post
    Hi everyone.

    I am trying BOGDAN's 3 Bar High and Low in Demo due to its simplicity. I also added Megatrend + MACD + 4h chart as confirmation (I don't know if adding these indicators are redundant, but I feel secure to trade when both the Trendwinner and megatrend have same colors). My problem is since this strategy works only in a trend, how can I detect early if I am about to enter a ranging price movement?

    1) Should I use MACD? (Correct me if I am wrong) Is it when the histograms is just fluctuating on the zero line?
    2) And if not MACD; what other indicators, procedure, or signs should I look for? Which will tell me that I am about to enter a range movement.
    3) What if the indicator/s is lagging? It only means I am already in ranging prize movement which defeats the purpose of early detection.

    Any comment, advice, feedback and correction is highly appreciated. Thanks in advance.
    I use a moving average (50 EMA on a 5 min chart). When it starts to flatten the market is about to enter a ranging period. Of course the only certainty is that there is no certainty so...
    Insanity: doing the same thing over and over again and expecting different results. Albert Einstein (attributed)

  6. #6
    Rookie Member outfox's Avatar
    Thanks. I will add the EMA immediately and see what I will learn. Thanks again.

  7. #7
    Legendry Member willyw's Avatar
    Hi outfox, you can use ADX to detect ranging market. When the ADX is below the value of 25 its a ranging market. You can combine ADX with Bogdan's 50 EMA for better confirmation.

  8. #8
    Rookie Member outfox's Avatar
    Thanks willyw.

  9. #9
    Legendry Member willyw's Avatar
    Quote Originally Posted by outfox View Post
    Thanks willyw.
    You are most welcome

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
3