How to Know if the Market is Trending or Choppy? The Easy Way

Why is it so important to know if the market is trending or choppy?
Trending market is easier and safer to trade, as the price normally falls or rise in a zigzag or following the common patterns.

There are common methods such as using the 200MA, but these methods don’t really work some times. They seem to be old and don’t work in the current market situation.

I used 2 new indicators for several weeks and the results were good enough to give me comfort when deciding which trade button to keep and which one to turn off using the Reborn EA.

  1. The first indicator is the Bands indicator which is a support and resistance based indicator. This indicator is way different from those available on the web, totally different.

  2. The second indicator is the Forex Chart Patterns indicator which draws the common patterns that we know such as falling / rising wedge, triangles, falling / rising channels.

When I used the patterns indicator alone, I felt that there is something missing at some point, I needed a horizontal line that shows me the demand zones. That’s why I use both indicators for improving the success rate of my trades and reducing drawdown when using EA.

Trending Market → Choose one direction for the EA to follow:

Too many horizontal lines indicate a choppy market → Either you stay away or let the EA on Hedge mode.

The Forex Chart Indicator will load the patterns of up to 6 time frames on any chart. The Bands indicator will load the support and resistance lines from up to 5 time frames on the same chart.

Falling wedge pattern (H1):

Here is the Reborn EA running on the visualizer using the Patterns indicator entries and automating the buy and sell buttons on the dashboard:

One last example:
This is a good Buy opportunity until the top horizontal blue line.

Both indicators will be available soon in the MQL5 Market.