How to confirm a trending or ranging market?

headstrong007

headstrong007

----- Full-Time ----- Day-Trader
#2
#2
this is wisdom...which comes from complex tech analysis & experience...
u would be a star trader, when u know this...:) u could be a master option trader then..
 
DSM

DSM

Well-Known Member
#4
#4
Both trending and sideways market can be determined visually. A stock or indice making higher high and higher low is said to be in an uptrend. A stock or an indice making a lower high and a lower low is said to be in a downtrend.


In a sideways market, the price trades within a range. A picture expresses it better.... Here are some :









Google for the term 'trending market' or 'sideways market' But instead of clicking on web, click on images. All the images of trending and sideways market will be displayed in one page.





MrsCalcutta said:
Can anyone help me how to confirm a trending or ranging market? What rae the indicators to use for this purpose?
Click to expand...
 
headstrong007

headstrong007

----- Full-Time ----- Day-Trader
#5
#5
U can predict trending or ranging market using combination of following indicators along with few trend lines, support resistance lines on your chart....

For momentum-> moving average crossover, ADX, TRIX
For Range squeeze/expansion-> Bollinger Bands, Donchian channel
For convergence divergence->MACD
For overbought/oversold-> RSI, Williams %R or Stochastic

-------nothing more except years of screen time in front of your trading terminal(as some frnd said perfectly) :) --------
 
Rish

Rish

Well-Known Member
#7
#7
MrsCalcutta said:
Can anyone help me how to confirm a trending or ranging market? What rae the indicators to use for this purpose?
Click to expand...
Confirming the trend is one aspect and trading is another aspect..

Live market, you should have experience to differentiate the trend..

After market hours..all looks good..

So...use one or two indicators (you select yourself) and study atleast for 6 months without trade and you will able to understand...how market behaves..
 
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