Flat market (flat on Forex).

The price of a currency pair always has a certain direction of movement, the exchange rate either rises or, on the contrary, rapidly moves down, but there are also periods when the quote practically does not change; this market state is usually called a flat.

Flat market (flat on the market) is a relative calm on the currency or stock exchange, when the trend moves only in a horizontal direction, and the price of the selected asset practically does not change.

According to statistics, the market is in a flat state more than 60% of the time, so this aspect is quite important when studying trading. Since knowing all its nuances allows you to make money even in such a situation.

The concept of flat is applicable only to a single time frame, since on an older time frame the trend may already have a direction of movement.

During these periods, the price usually does not stand still, but fluctuates in a small price range, the width of which does not exceed a few points; the rate either falls or rises, but these changes are so small that it is impossible to talk about an upward or downward trend.

Despite this, such a state of the market opens up excellent opportunities for making money even for an inexperienced trader, so one cannot help but take advantage of the emerging opportunities and prospects.

Flat trading.

There are two options for flat trading:

• The first is the most popular and most often used, it relies on the use of pending orders, the essence of the strategy is based on the fact that any calm in the market is replaced by a sharp movement towards the future trend.

Since we do not know in advance where the price will go, buy and sell

orders are placed Thus, if the flat ends, one of the orders will definitely work. Orders are placed slightly above the minimums and maximums of the existing flat, this will avoid false positives.

In this case, you should immediately record the size of possible profits and losses.

We set the take profit from 15 to 30 points, and the stop loss is slightly further than the minimum or maximum, depending on the direction of the transaction. That is, if you place a pending order to buy, then the stop loss value must correspond to the minimum price value during the existence of the Forex flat. • The second option is more complex and its use requires several conditions, a price movement range of around 10 points and a small spread for the currency pair .

In fact, this is trading in a narrow price channel, when trades are opened as soon as the price makes a reversal from one of the boundaries of the price channel.

Trading in this case takes place on M1 using high leverage, and the duration of the transaction rarely exceeds several minutes.

A similar trading option is described in detail in the article “ Scalping in the Price Channel ”.

A flat on Forex is not a reason to give up trading; some traders specifically wait for the market to enter a similar state, and only then begin their trading.