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Trend Trading Strategies in MT4

Markets can only do one of three things: go up, go down or move sideways. Range trading is the term that traders use when the market doesn’t move in any one direction.

Some currency pairs are far more prone to range trading than others, especially those currencies of countries with strong import / export relationships. The euro and pound represent two trading blocs that are neighbors: the UK and the EU. Neighbors tend to do a lot of trading with one another, which generally promotes stability in their exchange rates.

When you look at how real economic relationships show up in the exchange rates, you generally see that the exchange rate hasn’t moved very much. The EURGBP is fairly famous for being one of the least exciting crosses to trade.

Here’s a typical example taken from the current market. It’s a one hour EURGBP chart.