Flat Forex is like a moment of guaranteed earnings.
Most traders, out of habit, consider the opportunity to make money on the movement of exchange rates only in the presence of a pronounced trend, without thinking at all about the future.
Moreover, this is a mistake not only for beginners, but also for many experienced traders, not wanting to think about the future, sometimes deprives us of guaranteed profits, and it is the flat on Forex that provides this opportunity.
The reason lies in some psychological aspects, but further we will not talk about them, but about how to make money at a time when the price has practically stopped its movement.
Flat Forex is a trend movement directed in a horizontal direction, that is, the rate practically does not change, and its fluctuations rarely go beyond the boundaries of several points.
First of all, this phenomenon should be considered only in the medium term, when a similar trend is observed for at least an hour.
To be sure, it is recommended to find out the reason for the situation - as a rule, this is an expectation of some important event for the selected currency pair. If you find the reason, this will serve as a signal for you that the flat has ended.
Trading flat forex.
First of all, it should be noted that a flat is a real gift for pipsing; as a rule, it is at these moments that the price forms a narrow channel in which pipsing will occur .
The width of the price channel rarely exceeds 5-10 points, but fluctuations are repeated with a certain pattern.
The only unpleasant thing may be that with a floating spread its size increases significantly, so it is advisable to constantly monitor this value using a spread indicator .
The second trading option is, of course, placing pending orders, since any calm always gives way to an aggressive movement.
Placing pending orders is quite simple; they are set 15-20 points outside the boundaries of the existing price channel.
At the same time, you should not forget about stop loss. It is pending orders that are a guaranteed opportunity to make money during a flat, since the scenario for the development of events in this market state is quite standard.
Now all you have to do is determine the currency pair that is experiencing a flat on the Forex market and choose the most suitable trading option for you.