What percent of the time do you think that currencies are range bound?

[Trader333]

If the market ranges 70% of the time, do you think a strategy could be devised by selling new highs and buying new lows?
If the market ranges 70% of the time, perhaps such a strategy has some merit.

Some people already trade like this.


Paul

 

[Charlton]

However, I disagree that this information would not be useful

For example, if you knew that a market was range bound 70% of the time, it would seem like one could devise a strategy to exploit these statistics- like selling new highs and buying new lows, etc.

You don't seem to get my point.

Taing your example above I would use a strategy suitable for range-bound strategies for 70% of the time. This could be based upon identifying the S/R levels between which price was moving or by using an oscillator to determine overbought/oversold signals.

For the other 30% of the time you can use a trend-following strategy e.g. MA's

Now if the market characteristics were different e.g. 30% range-bound and 70% trending then you use the same strategies, but in this case the trending strategy would come into play for 70% of the time.

My point is that you choose the most appropriate strategy for the market conditions at the time. One decision that you might make is not to participate in the market under certain conditions.

There are plenty of ways of determining whether the market is range-bound or trending and therefore which strategy to use. I attach a couple of documents explaining ways in which this can be determined

Charlton

 

[mrsoul]

You don't seem to get my point.

Taing your example above I would use a strategy suitable for range-bound strategies for 70% of the time. This could be based upon identifying the S/R levels between which price was moving or by using an oscillator to determine overbought/oversold signals.

For the other 30% of the time you can use a trend-following strategy e.g. MA's

Now if the market characteristics were different e.g. 30% range-bound and 70% trending then you use the same strategies, but in this case the trending strategy would come into play for 70% of the time.

My point is that you choose the most appropriate strategy for the market conditions at the time. One decision that you might make is not to participate in the market under certain conditions.

There are plenty of ways of determining whether the market is range-bound or trending and therefore which strategy to use. I attach a couple of documents explaining ways in which this can be determined

Charlton

Thanks for the files Charlton.
I am going to look at them this week-end.
Where can you find the Schaff Trend Cycle Indicator?
My platform doesn't have it.

Michael

 

[Charlton]

Thanks for the files Charlton.
I am going to look at them this week-end.
Where can you find the Schaff Trend Cycle Indicator?
My platform doesn't have it.

Michael

Do a google search for Schaff code or "translate" the code in the attached document for whatever platform you happen to using for trading - that is assuming it has some kind of programming language

Charlton

 

[virtuos0]

Those PDF's are f'ing hilarious! I like the chart showing the most 'smack you in the face obvious' trend you've ever seen in your life, and the caption below it is:

"Hourly USD/CHF chart with DMI (ADX>25) indicating a trend is in place, reliance on momentum oscillators should be discounted"

You..must..be..kidding..me