I am using a strategy that I have created over a period of time. I have backtested it to find good results. However, when I finally put to the real thing, it backfired on the first 2 trades. It backfired because it just happened that the market went sideways.
A little on my strategy:
I use Ichimoku on default settings on a 1-hour chart along with a modified MACD and Stochastic. I am also using the 4 hours and 1-day MACD to help me to make a decision if I will be in the trade for a long or short period of time. I am using Pivot Point on the 5-minute chart and 1-hour chart. I trade on the 5-minute chart.
When the candlestick passes the Kijun-sen line in the Ichimoku on the 1-hour chart, as well as the other conditions of the Ichimoku indicator being right, I place a horizontal trendline on/below the candlestick. When the candlestick passes the horizontal line within the 5-min chart, then I place a trade depending on the conformation on the Stochastic. I use the Pivot Point on the 5 min chart for my stop loss for both long and short trades. My decision on whether I will be in the trade for a long period or a short period of time is based on the results showing on the MACD with the 1 and 4-hour chart. As well as the MACD on the daily chart. My MACDs has been modified. My limit/take profit is set using the Pivot Point on both the hourly chart and the 5-minute chart. Long trades are done using the hourly and the 5 minutes is used for short term trades.
Now, here is the problem, when the trend turns sideways, my indicators are not telling me and I am placing a trade. Then my stop loss is hit. I want to find other ways in determining when a sideways trend has started and finished other than using trendlines. If anyone knows of any indicators I could download from prorealcode that could help, then great, and thank you in advance. Or any other plans, then please share them with me.
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