how to regonise begin/ends of consolidation periods

[dtray]

hi all,


I was wondering how you guys regonise the beginning/end of a consolidation period best ?
What indicators do you use ?

Thanks

 

[rathcoole_exile]

not sure if it's what you're looking for but:

if you apply both Bollinger Bands and Keltner Channel to your chart, whenever both BBs are inside the KC then it indicates a period of consolidation/congestion. Then whenever one of the BBs moves outside KC it suggests that consol is over. This then allows you to set a bracket around the high and low of the consolidation period and trade the Breakout.
Not my idea - I learned originally from John Carter at Trade The Markets.
If you check out his website, he has an indicator where the BB and KC are converted into a row of dots, changing colour to signal "in" or "out" of consol ......

good luck, hope it helps...

 

[dtray]

Thanks, yeah that's pretty much what I meant.
Can you show me the link, please. I can't find any on John Carters' site ..

Thanks

 

[zupcon]

Thanks, yeah that's pretty much what I meant.
Can you show me the link, please. I can't find any on John Carters' site ..

Thanks

Theres a free version of the indicator for or the metatrader platform, I posted it here a week or so ago

http://www.trade2win.com/boards/general-trading-chat/46940-power-squeeze-indicator-5.html#post640270

Joe Ross also seams to has some reasonable ideas regarding the identification of consolidation that you might want to test, cant remember which book its from but one of his many adoring friends or afiliate marketes will probably be here like a rat up a drainpipe at the chance to promote his wares

 

[rathcoole_exile]

TTM Squeeze

TTM Squeeze Indicator

go to Products/Indicators/TTM Squeeze and play the intro video

 

[dtray]

Thanks guys!

Btw, what other good indicators could be used to regonise these consolidation periods ?

 

[dtray]

thanks guys!