Flat Forex is like a moment of guaranteed earnings.
Most traders, out of habit, consider the opportunity to profit from exchange rate movements
only when there's a clear trend, completely disregarding the long-term outlook.
This is a mistake not only among beginners but also among many experienced traders. This reluctance to consider the long-term outlook can sometimes deprive us of guaranteed profits, and it's precisely the flat market in Forex that offers this opportunity.
The reason lies in certain psychological factors, but we'll discuss them further, rather than those. We'll focus on how to profit when the price has virtually stopped moving.
A Forex flat is a horizontal trend movement, meaning the exchange rate remains virtually unchanged, and its fluctuations rarely exceed a few pips.
This phenomenon should be considered only in the medium term, when such a trend is observed for at least an hour. To be sure, it is recommended to determine the cause of the situation – typically, it is the anticipation of some important event for the selected currency pair.
If you find the cause, this will signal the end of the flat.
Trading on flat Forex.
First of all, it should be noted that a flat market is a real boon for scalping. Typically, it's at these moments that the price forms a narrow channel, within which scalping .
The width of the price channel rarely exceeds 5-10 pips, but fluctuations repeat themselves with a certain pattern.
The only drawback is that a floating spread significantly increases its size, so it's advisable to constantly monitor this value using a spread indicator .
The second trading option is, of course, placing pending orders, as any lull in the market is always followed by an aggressive move.
Placing pending orders is quite simple; they are placed 15-20 pips outside the existing price channel. Don't forget about stop losses, though.
Pending orders are a guaranteed way to make money during a flat market, as the scenario in this market situation is quite standard.
Now all you have to do is identify the currency pair that is flat on the Forex market and choose the trading option that best suits you.
