Statistics such as "the market only trends 30% to 33% of the time" are thrown around. Whether that is true or not, I do not know. But we assume that markets tended half the time. That would mean the range, 50% of the time-bound markets.
I suspect that the above-mentioned figures, as the number of small traders in the forex market are correct. Small traders have a way to disrupt trends. (This is why the big institutional traders do not likethem!).
Either way, however, we know that the market is trendless a significant amount of time. If you try a trend trading system during this period continue to be you (either no qualifications if you're lucky), or you'll get a lot of choppy losing trades.
A better way to achieve this is to use a counter-cyclical trading system. A counter-trend system seeks to do the "impossible". It provides for the high and low in a market. The figures, which, if it detects a high or low, the market is reversed from there (because it trendless), and you are a good bargain.
So what is a good counter-trend trading system? I would recommend starting with Bollinger bands. The basic principle is there, day trade from the upper and lower bands.
However, if the market in a trend, you will be eaten alive. Therefore, it is necessary that the band completely flat or almost flat.
And yet I would add an oscillator, such as stochastics to confirm the highs and lows. One of the> Beauty of a counter trend is the ability to use very tight stops. They would number one stop directly in front of the band that has just been tagged. Shooting for a profit target is only under the midline of the tape.
