Trending/Ranging Financial Markets
(i) Trending Market: When the price of a Financial Asset or Market follows a particular trend during a long time period
(ii) Ranging Market: When the price of an asset or a market moves up or down without following a particular long-term trend (Trading within a range formed by an upper and a lower band)
Trend Indicators are Reliable only in Trending Markets
□ If a financial market is trending, the trend indicators can provide considerably reliable trading signals
□ If a financial market is ranging, trend indicators may mislead traders (In the case of a ranging market, traders should better use momentum indicators which are able to identify short-term price movements within the range)
Table: Trend Indicators at ExpertSignal.com
UTILITY | SETTINGS | MORE | |
□ Standard Deviation (SD) |
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► Standard Deviation |
□ Moving Averages (MAs) |
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► Moving Averages |
□ Parabolic SAR |
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► Parabolic SAR |
□ Bollinger Bands (BB) |
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► Bollinger Bands |
□ Ichimoku Kinko Hyo |
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► Ichimoku |
□ Fibonacci Sequence |
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► Fibonacci Trading |