Forex low volatility strategy
He will then look to place an order about 10 or so pips behind the current range. That is 10 pips further away from where he expects the price to be in 24 hours.
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If the price moves to trigger his order and then quickly reverses into the range, he will close his position and book his profit. He may then rinse and repeat with a second, similar order. If the price triggers his entry but does not quickly fall back into the range, then he will set a stop around 30 pips above his entry and wait for his market view to play out.
Note : If you are taking this approach, then be wary of upcoming news. The key is to have an expectancy that moves will reverse.
Instead, place an order 30 pips away from your entry. If you want to go short at If you look closely at the current market, you will notice that on the higher time frames the ranges are quite tight on some currency pairs. It has had 21 weeks in a tight range, which has seen the Bollinger Bands contract more than they have in the past 20 years.
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But if you go down to the lower timeframes, there is still plenty of opportunity intra-day. Understand that the market type is a sideways quiet on the weekly chart and you can avoid trying to capture the non-existent trend.
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Instead, you can range trade the edges with profit targets on the shorter time frames. Pay particular attention to the daily and weekly edge of the range, as this is where the action will happen. You may get the breakout you have been waiting for, or you might get a superb range-trading set-up. Instead of blindly trading the same way regardless, the skilled trader considers the evidence in front of them and adapts their trading style. Take out a work pad and bring up your favourite currency pairs. Observe what they are doing and strategize some approaches you can take.
Then take action. Be proactive in times of low volatility and you may indeed find, that instead of being something you hope to avoid, this market type may become something you look forward to. Discover the MetaTrader 4 keyboard shortcuts that can help you save time when you need to place trades fast.
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You have probably noticed that the volatility of the most popular FX pairs is very low for weeks. More experienced traders remember that this numbers were usually well above a few years ago. When the volatility is low, the price moves are shorter and slower and it is much more difficult to make money. Fortunately, today the FX brokers are presenting much more opportunities to their clients.
Binary options are very good for trading in low volatility environment. This is providing the traders with an edge, but of course there is a catch. The trick is that you must find the right option with the appropriate strike and time to expiry when there is a tradable set up.