Home Trading Strategies Range Trading: How to Trade Range Markets Like a Pro

Range Trading: How to Trade Range Markets Like a Pro

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Range Trading: How to Trade Range Markets Like a Pro

hey hey what’s up my friend so welcome back to today’s episode where we’ll be discussing on how to trade range like a pro so here’s the thing right I know for me personally I I got started with range trading in my early years of trading because it seems to be one of the easiest trading strategy to trade right just by the lows of the range sell at the highs of the range you know what could go wrong and it’s only to like trade at it and I realized man it’s not as easy as I as I think it would be right and and you would probably encounter the same thing right when you treat range the first question you always ask yourself is how do I know if the range is going to hole or not right every time you buy the lows of the range it breaks every time you shot the highs of the range it breaks out okay so the first thing right to to know when you’re trading range is this right number one don’t shot higher lows into resistance and likewise right you don’t be buying when you see lower highs into some into support let me explain so when you notice right higher lows into resistance this is a sign of strength telling you that the buyers are willing to buy at this higher prices so that’s why you have higher lows into resistance and more often than not right the price is likely to break out higher so this is where you’d want to be shorting also when you are shorting right higher lows into resistance your profit potential is limited because if you were to show that resistance right and the previous swing Laura you would expect buying pressure to come in right you can imagine if you shot resistance right before the price get move down a little bit right it will encounter buying pressure near the previous swing low so there’s really not much meat left in that move okay so the first thing to take note that take note is avoid shorting right when you notice higher lows into resistance and avoid buying when you notice lower highs into support mix one right so now you might be thinking okay Reina so how do I treat the range name so whenever I trade the range I like to focus on this one thing I want to see a nice power move into support of resistance when I’m buying or selling let’s say I’m looking to shop I want to see a nice power move into resistance a Power Move is like a a big move right a strong move right where the market hits resistance very quickly so you can imagine this just you know two or three candles big bullish candles there is resistance very quickly so it’s very strong momentum and I like this for two reasons number one whenever you see a strong power move into resistance likelihood right is that a market right omits to breathe right after moving so fast in a short period of time moving so much in a short period of time right it needs to pause it needs to breathe you might do a pullback or even reverse altogether right because he lets you know move too fast too soon so this is where you know you as a trader who are looking to shut the highest of the range this is where you are come in and take advantage of this a phenomenon where the market has moved too fast too soon also right when ever the market makes a power move into resistance right you have a greater profit potential right because unlike the higher lows into resistance right which which I’ve mentioned earlier whenever the price makes a power move right they mix the area right where buying pressure would come in is usually and the start of the power move otherwise known as you know like a swing low on the chart with a big move started right the original price level with a big most at this is where buying pressure is likely to come in right so after you have moved so fast in a short period of time right when the reversal right it could be equally sweet towards the downside and it that move right that our profit potential is larger as well for you when you’re trading the short side okay and finally right when you are trading the range you want to pay attention to what the big picture is doing otherwise known as the trend okay so let’s say you are trading range on the out of two hours timeframe you gotta pay attention to where the daily timeframe is because if you notice the daily timeframe is in an uptrend then you want to be buying the lows of the range on the lower timeframe this it’ll gain increases the probability right of your trade working out okay so with that said I have come towards the end of this episode if you’ve enjoyed it hit the thumbs up button and subscribe to my youtube channel the link is below and I will talk to you soon you

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