Be careful with the sideway market

 

USD/JPY
The deceleration in bearish momentum yesterday resulted in a bullish reversal to start today’s Asian trading session. The pair is testing the 109.25 price level and the 20-period exponential moving average. A break of these two resistance lines will provide confirmation of the uptrend. MACD still has a negative bias, however, is turning more positive. RSI has flattened below the 50 support leve

GBP/USD
The GBP/USD pair has been trading in a fairly tight price range from the 1.284 to 1.290 price level, as neither currency has been able to dominate price action. The pair has hit a resistance level at the upper bound of price range at 1.290 and retraced to also break the 20-period EMA. MACD is approaching the zero line and becoming less negative and RSI remains flat. A previous less significant resistance level is at the 1.288 price level which the pair is starting to test. A full break will represent confirmation of the reversal

 

SILVER
Silver prices have been bouncing along the 20-period EMA which is currently acting as a support level. The metal is also reaching the 16.92 price level which when hit on two previous occasions, resulted in a bullish move. MACD is flat just above the zero line and RSI is flat just above the 50 support level, indicating that momentum is moderately bullish. Price action will likely continue to fluctuate between the 17.16 and the 16.92 price levels.


GOLD
Gold prices have also been affected by low momentum. Price action has hit the 1288 price level and the 20-period EMA. A break of these support level will provide some momentum for the bearish move. However, the move seems unsupported by momentum indicators. MACD is flat above the zero line and RSI has a mild downward trajectory just below the overbought 70 level. Volume is low, therefore major fundamentals news is required to generate any significant move for the metal.

'Be careful with all kind of market' - sounds a bit better :)

BaldoN posted:
'Be careful with all kind of market' - sounds a bit better :)

True. Though consolidation market seems to be exceedingly misleading.

:D I can't agree more

When it comes to consolidation it's best to open just short-term positions and close them as quickly as possible.

That’s really true; there is no way to use sideway market, I always close my chart during sideway; I start my learning process when it occurs!

Smart move @AniLorak!

I don't mind sideway's markets. Like people have said above, it is a good place for short term trades

BattleReady posted:
I don't mind sideway's markets. Like people have said above, it is a good place for short term trades

True. As long as you're careful and can figure out the support and resistance levels of the channel, why not?

Sideway market could be profitable either on short term (minutes) time frames or long term trades (daily +) :)

BaldoN posted:
Sideway market could be profitable either on short term (minutes) time frames or long term trades (daily +) :)

Good point. It depends on how tight (or wide, for that matter) the range is.

mlawson71 posted:

BaldoN posted:
Sideway market could be profitable either on short term (minutes) time frames or long term trades (daily +) :)

Good point. It depends on how tight (or wide, for that matter) the range is.

Also it depends what kind of strategy you do trade

BaldoN posted:
'Be careful with all kind of market' - sounds a bit better :)

Yes, there is no certainty, it’s all about probability! Anytime market can change its direction.

AmDiab posted:

BaldoN posted:
'Be careful with all kind of market' - sounds a bit better :)

Yes, there is no certainty, it’s all about probability! Anytime market can change its direction.

Exactly sideways market can change into raging market during seconds!
Somewhere here on MFB I read that user do not use stop loss as they are not needed as trades last couple of minutes.
That is pure nonsense, in forex anything could happen and it could happen very fast.

Just look at USDCHF a few years ago 1000pips movement in seconds

Nutter21 posted:
Just look at USDCHF a few years ago 1000pips movement in seconds

That was no random spike, the reason for that movement was the Swiss Bank unpegging the Franc from the Euro, causing panic.

mlawson71 posted:

Nutter21 posted:
Just look at USDCHF a few years ago 1000pips movement in seconds

That was no random spike, the reason for that movement was the Swiss Bank unpegging the Franc from the Euro, causing panic.

yes and it moved market thousands pips in minites

togr posted:

mlawson71 posted:

Nutter21 posted:
Just look at USDCHF a few years ago 1000pips movement in seconds

That was no random spike, the reason for that movement was the Swiss Bank unpegging the Franc from the Euro, causing panic.

yes and it moved market thousands pips in minites

I remember. It was awful, a lot of companies and individual traders went under because of it.