FX Trading Command Room | The 7th FX in a Range-Bound Market is the Normal Mode [FX攻略.com Editorial Team]

From the standpoint of publishing the only monthly FX information magazine in this country, the aim of this project is to extract the common mistakes and frequent misperceptions that many traders are prone to and share them with everyone. This time, we would like to think about “range markets.”

【FX Trade Command Room [FX Kakaku.com Editorial Department]】
・Episode 1: League Battles and Tournament Battles
・Episode 2: Before You Start Scalping
・Episode 3: Steps to FX Mastery
・Episode 4: Effectively Utilize Various Order Types
・Episode 5: About Searching for the Holy Grail of FX
・Episode 6: Technical Indicators Are Not Omnipotent

Table of Contents

1. In fact, Trends Have Short Timeframes
2. The Dollar/Yen Remains Within a Huge Range
3. If You Think It’s Always a Range, It Flows Smoothly
4. Isn’t the Market Almost Always in a Range?
5. Summary: FX = Range Markets That Make Sense

In fact, Trends Have Short Timeframes

“Trends tend to continue once they start, so being able to ride the trend is crucial,” is something written not only in this book but in virtually every FX book.

Indeed, trend following is the king of investing and undeniably the easiest way to profit.

However, in FX markets, it is also stated in many media that ranges persist longer than trends. You cannot always hop on a trend easily.

The Dollar/Yen Remains Within a Huge Range

From the perspective of duration, if you consider the basic state of the market as a range rather than a trend, you can understand the characteristics of FX more readily. In meteorological terms, it’s range with occasional trends.

However, the idea that this range is the normal state varies depending on whether you view the chart on a long time frame or a short time frame. Chart ① clearly shows that...