Trending versus ranging regimes: how do you trade both?

Most strategies favour one regime and suffer in the other. The traders who handle both either run two strategies, use regime filters, or trade one regime and sit out the rest.

Trending versus ranging regimes: how do you trade both? — trend versus range diagram
A trending market compared with a ranging one

What's your structure?

  • how you classify the current regime
  • the strategy each regime gets
  • how you avoid trading a range like a trend
Trending versus ranging regimes: how do you trade both? — support and resistance diagram
Price bouncing between support and resistance

The trend lines guide and Bollinger Bands guide supply the classification tools.

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