Neutral Zone Strategy for Strong Trends

That's why I always check the economic calendar. If there's important news in the next hour, I don't open new positions. I'd rather miss an opportunity than eat an absurd spy.

I think it's wise. Have you thought about scheduling an EA that automatically detects the areas?

Yeah, I'm on it, but scheduling visual detection of clean consolidations is not trivial, the human eye is still better at identifying certain patterns than algorithms, although automating alerts is already working.

I subscribe to the thread. I am very interested to see how you continue to tune the system. Thank you for sharing without smoke or magic promises.

One of the fundamental keys that has allowed me to consolidate the strategy "Neutral Zone" is the deep understanding of the price behavior within ranges. Ranges are not random zones where the market stops without reason; they are zones of accumulation or distribution. When the market moves later after a previous impulse, it is usually because the large participants are deciding whether to continue the trend or reverse it. This knowledge has allowed me to be much more selective when marking the valid ranges. The decreasing volume within the range is a critical signal. It indicates that the interest is falling, which usually precedes an expansion of volatility. But it is not enough to wait for the breakout: the exact time of entry is key. I do not enter the first tick outside the range, I expect a clear closure above or below the marked area, with increasing volume confirmation. This eliminates many of the false breaks that usually frustrate the traders breakout. Another relevant aspect is the management of the position once in the trade. Many times the price breaks and makes a small pullback before continuing.

Thanks for the detailed explanation, I now better understand the weight you give to the volume within the range.

I don't know if I agree.Forex volume is unreliable, as it's decentralized. Don't you think you're overvaluing such questionable data?

Very good remark about patience. It is the Achilles heel of most traders.

I have one question: how do you visually define that the volume is "high enough" in the rupture? Do you use any moving mean of the volume?

Excellent contribution to the macro context. That's where many of us fail to operate blind to the general picture.