Geopolitics Week - Part 3 | Vantage FX
- 11 years ago
Vantage FX (www.vantagefx.co.uk) investigate how to use oscillators in range-bound markets.
Geopolitical Week
We are looking at an hourly USD/JPY chart from 6 September where we see a gap upwards over diminishing tensions in Syria. Then we fill the gap and what used to be resistance now becomes support.
There was a big drop over the weekend with the news of Larry Summers' resignation from the candidacy for Chairman of the Fed, bringing us into a range-bound situation. It now appears that Donald Kohn may be elected as the new Fed Chairman instead of Janet Yellen, and on the back of this news we see a move sideways.
You can use oscillators designed for range-bound markets and discard any focused on trending markets (so you would not use moving averages). For example RSI, Divergence and MACD are good oscillators to use for range-bound markets.
Geopolitical Week
We are looking at an hourly USD/JPY chart from 6 September where we see a gap upwards over diminishing tensions in Syria. Then we fill the gap and what used to be resistance now becomes support.
There was a big drop over the weekend with the news of Larry Summers' resignation from the candidacy for Chairman of the Fed, bringing us into a range-bound situation. It now appears that Donald Kohn may be elected as the new Fed Chairman instead of Janet Yellen, and on the back of this news we see a move sideways.
You can use oscillators designed for range-bound markets and discard any focused on trending markets (so you would not use moving averages). For example RSI, Divergence and MACD are good oscillators to use for range-bound markets.