“Pathfinder”: version to trade in flat
More often than not, the market is flat in the evening and at night (UTC): the price moves calmly within a rather narrow price range. Fluctuations are small, but quite predictable, so you can trade on them. The main question is how do we determine moments of price reversal during a flat? We'll tell you and show you now!Step 1: Preparing the indicatorsSelect the Bollinger Bands indicator with default settings. It will show the moments of maximum deviation of the price from its average value.
Then select RSI (Relative Strength Index) and apply the following settings: • Period 9 • Overbought level 70 • Oversold Level 30The RSI will show the moments of price reversal.
IMPORTANT!
Trading time: it is most effective during the evening and at night (UTC) starting from the second half of the American trading session (at 5:00 PM) until the end of the Asian session (until 6:00 AM).
Assets to trade: there are some assets that are often in a flat for most of the day, except during the publication of important economic news.
For example: CAD/CHF, AUD/CAD, EUR/GBP, and Gold.The expiration (the time before the trade closes) depends on what time frame you are trading on and the intensity of the price movement after the flat.
If you chose the 15S-1M time frame, an expiration of 3-5 minutes is best.
If you prefer longer time frames, then INCREASE the expiration as well.It is not recommended to enter into trades that exceed 2% of your trading account (for one trade).