Price Action: Trading Range Methods (Part 1)

Price Action: Trading Range Methods (Part 1) A trading range can be tight or broad, and you need to trade them in different ways. Looking for early signs of what the market might be doing is important, therefore, traders must watch for early signs that a trading range may be forming. Once you think the market is in a trading range, it is best to buy in the lower third and sell in the upper third. A good approach is to buy from a reversal near the bottom of the range. Entering with stop orders is a good way for beginning traders to trade, and in fact, for those just starting out, it is the best approach. When the rally looks weak, it is more like a bull leg within a trading range rather than the start of a new bull trend. If price is at the top of a potential trading range, the win rate for entering at this point is usually poor. When the trading range is tight, most traders should not rashly trade. The market is either in a trend or in a trading range, and the two alternate. A trading