Any Indicator or Price Pattern which works well in both Trending and Ranging Market?

No there is no such indicator. In fact, there is no one indicator that works all the time in trending markets even. The more you run behind the holy grail indicator or combination of indicators, the farther you move away from the ultimate target of the trader, i.e. consistent profitability.


Depends upon how you use it, ADX for example, its usually below 25 threshold when NOT trending and above 25 in strong trends, so technically it works well in both trending and ranging periods, but the big question is how do you use it to enter exit the market?? This is where strategy and rules come into play.


Yes i agree with Jagadeesh, but it depend upon your skill how you interpret any chart with the given indicators, however I will try to help you by showing my approach to trade in the trending and sideways market, I personally use bollinger band with 5 sma

buy rules: the bull candle should close above 5 sma after touching the lower bband and stoploss will be below the low of previous bearish candle

there may be two scenarios: one is if the market is side ways it will give respect to our trade entry as we are taking it in the bottom not at the top as we do in trending market.

second case, if the market is trending then upon our stoploss we enter a new short position

I will summarize once again, when u enter a long trade say 100 shares by placing stop buy order above the high of bullish candle as mentioned above with stoploss double quantity i.e.200 shares below the low of bearish candle mentioned above

if price goes as we expected then trial stoploss and cancel the earlier stoploss of 200 shares

if price goes against our position then from 200 shares, 100 shares will be squared off in loss and new short position is open with 100 shares and place the stoploss above the high of previous candles

I have traded in banknifty just now, if some one interested i may show them or you can check by yourself after applying indicators i mentioned above, one more thing your stoploss will be triggering 50 % of time in worst case scenario, but the ultimate profit will be more becoz of risk reward ratio.

if you have any doubts you can ask [email protected]