I've been around the forex market for nearly 4 years now and it seems there is a general consensus that trending markets and ranging markets cannot be traded with the same system.
Furthermore, I've seen several system that work great only in trending markets, and several that work great only in ranging markets.
So what is needed is some sort of methodology that precisely defines a trending market and a ranging market. Once we have this, then half the battle is won and we can then focus on refining our respective trending and ranging systems.
I am a strong believer in "less is more" and "KISS" since the more complicated the definition is, the more we risk curve-fitting the methodology to a specific range of time in the market.
So, what is everyone's best idea on how to precisely identify ranging and trending markets?
Furthermore, I've seen several system that work great only in trending markets, and several that work great only in ranging markets.
So what is needed is some sort of methodology that precisely defines a trending market and a ranging market. Once we have this, then half the battle is won and we can then focus on refining our respective trending and ranging systems.
I am a strong believer in "less is more" and "KISS" since the more complicated the definition is, the more we risk curve-fitting the methodology to a specific range of time in the market.
So, what is everyone's best idea on how to precisely identify ranging and trending markets?