My method for conquering the range market [Shuta Furudou]

About 70-80% of the foreign exchange market is said to be in a range market, moving up and down within a certain price range. Unlike trend markets, range markets have no clear directional bias and low price movement, which can make them challenging for traders. So this time, we will have Shūtarō Fudōo (Shūtaro Fudō) teach us how to master range markets.

Shūtarō Fudōo (Fudō Shūtaro) Profile

Foreign exchange instructor and writer. He releases seminar DVDs and interview CDs through publishers. In addition to giving lectures at financial exchanges, stock exchanges, FX brokers, and mutual fund providers, he also writes for magazines and serves as an FX and stock market school instructor.

Official site:Shūtarō Fudōo's “Behind the News Coverage”
twitter:https://twitter.com/syutaro_fudo

Why does a trend continue in the foreign exchange market?

A market that rises or falls significantly is called a trend market, while a market with no direction is called a range market. In the FX market, trends can last six months or longer, and even longer range markets are not rare. Therefore, to consistently win in FX, it is important to have strategies that profit in range markets.

As you all know well, when a country’s economy improves and inflation rises, to curb excessive inflation, that country’s policy interest rate is raised. In other words, exchange rates move according to the monetary policy of the country whose currency is used.

Stock prices move based on a company’s performance and popularity, but monetary policy can continue for more than a year, and in some cases several years, affecting a national economy. For this reason, when an FX trend such as a yen appreciation appears, it can continue for a long time.