Hello Guys,
I'm a beginner trader from Europe and I've been trying to learn forex for some time now.
I've been building up my strategy mostly using trendlines, moving averages and the stochastic oscillator. I managed to get to a point where I never miss a decent movement. However... I have a problem that my strategy is not very good or rather very bad when there's sideways market or not much trending movement so I hit a tremendous amount of whipsaws because of this issue.
For the last few weeks I spent by trying to find ways to filter out sideways market conditions. I tried to use boilinger bands first, then a shi-channel breakout-type approach - no luck. Then I went for the Demark trendlines, maybe that would work - but no way.
Is there any decent way to filter for sideways market?
On another website, I've found this:
Quote:
The relationshp between the ADX & ADXR and the relationship between ADX
and PDI & MDI is in my experience a good way to filter out non-trending
issues/markets.
For a market to be trending one of the two conditions have to be met.
1. ADX is greater than ADXR
2. ADX is between PDI & MDI
|
Well... I don't know, it may be true. But I'm using MetaTrader 4, and I don't have this ADXR, PDI or MDI indicator (I have only ADX as far as I can tell) so I cannot confirm or deny. Even so... this description is too vague for me at my stage. (Yeah. I'm green, I know...)
Anyone has a good idea or a method about this? I'd really appreciate any response...
