When the market is “flat” or “ranging”, some traders attempt to “buy at low prices and sell at high prices.” While this may seem simple, in practice there are tricks you must understand.
Trading Range Aid
Traders using ranging strategies will usually identify the level of support and resistance. It is for them to make reference price level buy or sell. This makes trading happen between two parallel horizontal lines of support and resistance. In that area, traders are looking to profit from price conditions that move ranging. You can also read fxtrade777.
Ranging Price Movement
Often the price moves between two parallel lines for days. Sometimes within a week before a breakout occurs. Many traders open positions sell at resistance levels. Or take a buy position in the support area. It was to try to take advantage of the situation. Follow tradex1.com for the news update.
Ranging and Breakout Prices
The momentum that often happens is when the breakout with great strength and managed to penetrate the level of resistance or support. After that, the price tends to move to the next target with the same setup. Namely with the vertical distance between the projection line from the price level before the breakout occurs.
Some traders will take advantage of these opportunities by:
- Buy in the “dip” area when the price tries to move up or vice versa.
- Placing a stop loss position when the price moves ranging.
- Placing the take profit level.
If the breakout occurs at the resistance, you need to add a measure of the breakout level.
However, keep in mind that it takes a certain skill to be able to analyze price movements technically. Therefore regular and consistent practice should be done. To try to practice this system, there is no harm in opening a demo account first. In addition, discipline for this trading system ranging can work well from time to time.