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Indicators / strategy for ranging markets

What are good indicators and/or strategies for ranging markets. Most seem to suitable for trending markets.


  • The_Geek_MHThe_Geek_MH Posts: 860 mod
    Most indicators can be used in both, you just have to use them the correct way. Support and resistance lines are probably the first thing you should be using. When prices reach the upper or lower boundary of the range, the support or resistance line, they are likely to reverse, or at least fall back/move up from that line. The next thing will be to add in candlesticks, once prices reach the line use the candlesticks to pinpoint entries. Yet another addition to this will be to use an oscillator tool such as stochastic, MACD, or one of the dozens of other oscillator types tools. These tools show OVERBOUGTH and OVERSOLD levels, when asset prices reach s/r line and the indicator shows ob/os and the candlesticks give a bull/bear signal you will have three indications confirming each other.

    here are some links to articles we have about the stochastic indicator. Let me know if you have any more questions, when you have more questions I should way. Good luck!
  • ehenderichsehenderichs Posts: 22
    Thanks for your response. I was starting to believe that all/most indicators are for trending markets. I have started to focus more on candlesticks since I believe, they give you the first clues about the market. Lately I have read some good things about bollinger bands so I started demo trading using this indicator icw candlesticks (and stochastics). They seems like a good candidate for both trending as ranging. Hope I like this one
  • The_Geek_MHThe_Geek_MH Posts: 860 mod
    All indicators can be used for either/or... the trick is knowing what kind of market we're in, and then using the tool correctly. I just posted on your question about candlesticks, check it out too...
  • OkaneOkane Posts: 1,282 admin
    Indicators just "read" what the candlesticks show. A human will always be better at seeing the bigger picture.
    Therefore, price action is the best method. Because you will learn how to discover convergence and divergence, main
    trends, small trends and retracements. You will find patterns and set up your targets in all market conditions.
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