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Whipsawing FX markets, represent some of the most challenging trading conditions traders can face. Inexperienced traders, who are unfamiliar in witnessing such rapid change, can experience elevated levels of stress and perhaps incur unnecessary and avoidable losses, during periods when the markets become volatile and highly unpredictable.

Coping with such FX market behaviour involves identifying such periods, whilst ensuring you’ve put in place the right coping mechanisms to survive such moves. The coping mechanism involves both your psychological approach and the use of the physical options available on your MetaTrader platform, such as stops and or a circuit breaker. You can also use the various technical indicators to warn or pre warn you of whipsawing conditions, indicators that illustrate a rapid change in the range of a market, such as; the average daily range, or average true range.

Perhaps the best indication of whipsaws is your eyesight, as you can clearly, visually identify a...

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