I would like to introduce you to a wonderful and yet powerful Forex indicator that helps you filter out ranging markets.
Ranging markets are those periods on the forex market that traders hates the most. These are times where you do not know the direction of the markets, maybe the markets are waiting for a big economic or political event before gathering some momentum. During these times, its possible for your strategy or forex signals to give you false signals.
Because of the nature of the markets, there is a high probability that trades would be boring, and less accurate. Its also very possible for a ranging market to bring losses than expected, this is because the market is directionless and its better advised to stay away from trading a ranging market.
But the difficulty arises when a trader finds it difficult to detect a ranging market, apparently because there are no immediate signals to tell if the market is in a ranging mode or not. The conventional metatrader indicators like moving average, bollinger bands, parabolic SAR, MACD would always give signals whether the market is ranging or trending.
This complicity of the matter brought about the powerful indicator that accurately predicts a ranging or trending market – Damiani Volatmeter.
The primary job of this indicator is to tell whether the market is flat or trending. Once installed properly into your chart, the indicator is displayed at the bottom of the chart with a clear decision of: TRADE or DO NOT TRADE
Your job as a forex trader would be to understand the action of the indicator. When it says TRADE, it means whatever strategy or signals you are using, there is a high probability that the market would trend in whatever direction it chooses. Conversely, when the indicator displays DO NOT TRADE, that means the market is flat or in an indecisive mode, and it best advised to stay away from trading till the indicator give a TRADE signal.
Please be reminded that this indicator is not a BUY/SELL indicator or forex signals generator. How you use it is dependent on you and your trading style.