Awesome Flat Market Detector Indicator
A special detector of a flat market. Free download. Suitable momentum and trend identifier.
Description
The flat market detector is one of the few technical tools designed for detecting a ranging market. You’ll want to stay out during a flat market and only enter when the market starts to expand in readiness for a strong trend.
The indicator consists of a histogram that posts blue and red histogram bars based on the difference between fast and slow Exponential moving average. It also features two threshold lines calculated by the Gamma standard deviation of the histogram bars. You can use the indicator to trade any instrument in any time frame.
How to Trade Using the Awesome Flat Market Detector Indicator
Essentially, the indicator is used to identify a flat or choppy market when the histogram bars are within the range of the threshold lines.
The blue color indicates the bar has a higher value than the preceding bar, while the indicator posts a red bar when the bar’s value is lower than the previous bar.
In addition, the indicator signifies increasing momentum when the bars pierce through the threshold line strongly. Similarly, long histogram bars that reach far from threshold lines signify a strong trend.
Trading Example
The Euro against pound chart on a daily time frame perfectly shows the flat market trend indicator in play. Notice how the indicator histogram bars breach the threshold line, strongly indicating an increasing momentum. The red bars elongate far from the threshold line, indicating a strong downtrend.
Conclusion
The awesome flat market detector is one of the unique indicators that help identify a ranging or flat market. It also shows the momentum and market trend. It is a suitable tool if you trade using the Asian range strategy.