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What is range trading?

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What is range trading? in Forex Advertisements_xx

Range trading is one of the most basic trading methods in the FX market. It can complement other strategies, such as trend following or breakout trading, and it can also be used independently to help us make profits.

It is not difficult to identify the range on the chart. There are always some obvious price areas that allow us to find the possible path of price change. Although the interval has different variations, it always has its own characteristics.

Ranges are generally formed when prices are limited between support and resistance levels. So one of the easiest ways to trade a range is to enter or exit a trade at the boundary of the range and sell if the price is at the top of the range and buy at the bottom.

Trading strategies come with a certain level of complexity. In a false breakout, the price first breaks out and then reverts back to the range. When trading ranges, try not to chase price after a breakout, as range breakouts can be relatively strong. If you choose the wrong direction, you must stop the loss in time and wait for the opportunity to enter the market again.

Likewise, it is best not to trade after the price has broken out and back into the range. For established ranges, it is common to have multiple retests of the border before a complete breakout. A retest can be used as an exit opportunity. For this reason, there are times when a breakout seems likely to occur even after the price re-enters the range and we want to avoid it.


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#1 - July 22, 2022, 09:06:09 AM

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