Trading between support and resistance (Range trading)
Range traders are masters of support and resistance, they care little for overall trend or market direction, range traders focus more on the underlying rang or move in order to maximize returns. Ranges often develop on a lack of volatility or when a near term top or bottom is in place. Range traders place there positions in the belief that prices will trade between the same levels many times allowing traders to profit on the moves, over and over again.
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Permalink Reply by Adam Horak on
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Permalink Reply by Jim on
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Adam, could you elaborate a little more on range trading? Specifically,what criteria does a range trader look for when deciding to trade? Is it a range of "X" pips in "Y" hours/minutes? Is it a previous day's range or an opening hour or what? Where are the trades placed and what stops/limits are used? How is the range established? What behavior are your looking for to determine that the direction has changed? Are both directions traded? If you are trading both directions, when do you exit and when do you enter the next trade? Using your example chart, at what point would this range have been established? How much data on that chart would have been required to determine it was a range and not a trend? Any additional details of this strategy are appeciated.
thanks,
jim
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Permalink Reply by Danny Toledo on
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Do you only focus on the short term times such as 15, 30, 60, 90 or longer term such 360, daily, weekly, thanks
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