30% Market Trends Only?

[Pipsaholic]

Hi,

I hear that 30% of all currency pairs only trend 30% of the time and 70% of the time markets are choppy is this true can anyone point me to a post or article about this?

Thanks.

 

[JahDave]

Hi,

I hear that 30% of all currency pairs only trend 30% of the time and 70% of the time markets are choppy is this true can anyone point me to a post or article about this?

Thanks.

You have to identify what time frame you are trading. A good trend on the 5 minute chart is not a trend on the 4 hour chart. A trend on the daily charts is truly a wonderful thing, but it does not happen often. I say that currency pairs only trend 15 or 20% of the time.

 

[Barramundi]

Hi,

I hear that 30% of all currency pairs only trend 30% of the time and 70% of the time markets are choppy is this true can anyone point me to a post or article about this?

Thanks.

Why not just look at a few charts and see for yourself? You'll get more value out of recognising the difference between trending markets and range bound markets in the time frame/s that you are trading than by being able to quote a few statistics from some article.

The above quote sounds like it's straight out of my book on dumbest quotes:
'80% of this game is 100% mental' by a sports player.

What did you hear about the other 70% of currency pairs?

 

[Pazienza]

It really depends on what time frame you're looking at.

First here's EURJPY, monthly chart. Based on this it spent about 90% of the past 2 decades trending - down with minor corrections, then up with virtually no corrections. It now looks like it's resuming the down trend, although I'd like to see the 2000 low broken before I commit myself .

Next is the 4hr chart. Hang on! This pair does not trend at all!

So the question is not really one that it is possible to answer in its present form.

 

[Pipsaholic]

You have to identify what time frame you are trading. A good trend on the 5 minute chart is not a trend on the 4 hour chart. A trend on the daily charts is truly a wonderful thing, but it does not happen often. I say that currency pairs only trend 15 or 20% of the time.

Yeah, just generally overall to be honest I like the 1 hour charts. Do you find that 15-20% is enough to make it worthwhile trading breakouts?

Why not just look at a few charts and see for yourself? You'll get more value out of recognising the difference between trending markets and range bound markets in the time frame/s that you are trading than by being able to quote a few statistics from some article.

The above quote sounds like it's straight out of my book on dumbest quotes:
'80% of this game is 100% mental' by a sports player.

What did you hear about the other 70% of currency pairs?

Yeah, your right I guess it will come with experience in the game now for 3 months and it doesn't look near that figure you may get a few days a month where markets are choppy then again there are always other markets to trade on just need to watch the spread to make it worthwhile Thx.

I got that info from a former stockbroker who quit his banker trader job to work from home managing his own accounts.

Thanks.

 

[JahDave]

I can't answer that for you. You have to decide what's acceptable for your own trading. I have my own system I have put together and when it says buy or sell I do it, I don't look for breakouts.

 

[Vorbis]

How, precisely, are you defining a trend? If you do not know then the question cannot be answered. If you do know then the answer should be obvious?

 

[shadowninja]

Yeah, just generally overall to be honest I like the 1 hour charts. Do you find that 15-20% is enough to make it worthwhile trading breakouts?

What it means is that you can trade without a stop 80% of the time, averaging down etc and make big profits but the 20% of the rest of the time, the market will rape you without lube and you'll end up giving more back than you made in profit, wasting 2 months' work.