Is There an?

[traderjuk]

Hi, just wondered what the best indicator is to give a fair idea if a particular market is going to move sideways, the problem being this produces lots of whipsaws with for example a MA crossover system....and I wanted to know when to enter the market safely etc....

I apologise if Ive not explained this very well.

Thanks

John.

 

[Aleph Sigma Chi]

The best one I've found to date John, and it is not a lagging indicator, it's totally dynamic (almost) is to look at what the price is doing and has been doing for the last X bars. If the highs/lows are within an easily recognizable 'bound' or 'range' or 'band' and that band is roughly horizontal - you're in a range - until it isn't anymore.

That might not seem a very helpful answer, but it's the best I have.

 

[mburdge]

Bollinger bands are also pretty good at indicating a sideways market. if they are horizontal, the price will usually trade within them.
Look at USD/CHF today on 15 min chart. between 7am and 2pm they were pretty horizontal. the the move came about 2.15pm with a clear break down.

Also, when they squeeze close together, get ready for an iminent move.