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.
What's your structure?
- how you classify the current regime
- the strategy each regime gets
- how you avoid trading a range like a trend
The trend lines guide and Bollinger Bands guide supply the classification tools.
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