How to Trade in a Slow Forex Market (Low Volatility)

image of a hand with the text buy, sell or hold. Next to it is a man on a bench with the thought market volatility.
chart of the ranging market of EUR/CAD
The ranging market of EUR/CAD

What is low volatility trading?

How do we determine low volatility?

1. Determine top and bottom

chart that shows two bounces from the top of the range and two from the bottom

2. Use the Bollinger Bands indicator

chart that shows Bollinger Bands

3. Use the Average Directional Index

chat featuring Average Directional Index indicator

Which strategy should we use in low volatility markets?

1. Take a break

2. Trade using a lower timeframe

3. Use a range-bound strategy

The Exponential Moving Averages (EMAs) Graphic
The Exponential Moving Averages (EMAs) Graphic
chart that shows a good ranging period and a choppy period
A good ranging period and a choppy period

4. Use a breakout strategy

5. Focus on small trades

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