Using a better indicator to scan for ranging markets: The "Ranging Market Detector"
Needless to say, trend following is the best way of trading. Try otherwise and life becomes really frustrating. Besides, even as you follow the trend, it is also vital to avoid entering and a point of disadvantage when price is due for a significant retracement. Many indicators will help you when the price is trending but abandon you when things turn chaotic such as when the price is range bound or the retracement starts to look like a new trend. Our development team created an innovative approach to take care of these two scenarios: resulting to the Ranging Market Detector (MT4 indicator).
https://www.mql5.com/en/market/product/66062
Advantages
1. Cut Bad Trades significantly
The indicator scans the market for the momentum and price and determines whether the market is ranging or trending. The Ranging Market Detector/scanning indicator will save you from embarrassing entries. See the chart below.
As you can see, point 1,2,3,4 and 5 are all possible candidates for a buy according to the 21-EMA. However, if you can look at the Ranging Market Detector/Scanner, all the five inflections were just an opportunity to sell at an advantage but not buys, not even close!
Therefore, the Ranging Market Detector saves 100% of all the five possible bad trades.
2. Shows you the START of ranging
Indeed, if all the indicators could show when the price change is occurring rather than when the action has happened, you would be richer. The Ranging Market Detector draws histograms when the market starts showing signs of exhaustion, which then gives you the opportunity to book profits, shift the stop loss, or even prepare for another entry.
3. Shows you when the ranging and Re-tracing is completed
As long as the short-term and long-term signal lines break above 30 or below -30, then this is a green light that you can now prepare for an entry just as it is supposed to be for instances shown by numbers 1,2,3,4, and 5. Hence, you no need "the top 5" or "top 10 most profitable indicators". All you need is a chart indicator and Ranging Market Detector to scan the trend readiness.
4. Indicates when market is trending and trend continuation
The Ranging Market Detector is great in depicting the trend in that both the long-term and the short-term (fast) signal lines are not over reactive, hence, they do not respond to minimal price movements. This allows you to stay longer in a trend without compromising your profit in the long run.
5. Hints when the market is ready for an early swing trade entry.
This indicator helps you identify when the market is truly oversold and ready for an early buy or overbought and ready for a sell.
Swing Buy hint: When the fast signal lines moves above 30 and long-term signal line moves above -30
Swing Sell hint: When the fast signal lines moves below -30 and long-term signal line moves below 30
The Ranging Market Detector by Innovicient should, therefore, be part of your strategy.
