In forex trading, sometimes the price bar forms what are called special configurations, or a price bar that can be considered to have some significance when taken in context with the bars surrounding it. The most common of these special configurations are inside days and outside days.
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Many currency pairs enter restricted trading ranges during the low-liquidity summer doldrums, currently upon us. While massive profits aren’t likely from range-trading, it can be a lucrative trading strategy, performed properly.
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Category : Ranges Tags : forex analysis, forex trading market
A simple and popular measurement of volatility named for its creator, Bollinger bands place the price bar itself within a graph of relative highs and lows, making it easy to tell at a glance how the current price relates to its range over a predetermined lookback period.
There are three components within Bollinger bands:
• A central 20-time period simple moving average, usually calculated on the close.
• An upper and a lower band, achieved by offsetting the SMA-20 by two standard deviations higher and lower. Read More…
Category : Ranges Tags : bands, bollinger, bollinger band, bollinger bands
There’s no method of trading ranges that will capture the absolute highs and absolute lows, reaping every pip of profit. However, on slow and range-bound forex trading days, there are methods that help to maximise what can be reaped.
Below is the current fifteen-minute chart of EUR/USD:
There hasn’t been much movement today for the world’s most traded currency pair. What there has been is stuck between support at 1.3650 and resistance at roughly 1.3712 (light green horizontal lines). Utilising a combination of two moving averages, and an accelerator oscillator, has helped skim a few pips of profit from an otherwise useless forex trading day.
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Category : Ranges Tags : Forex, forex trading range, forex trading ranges
