 | What is the definition of Range Trading?
Range trading is a style of trading where a trader buys a currency pair when its price is close to support levels and sells a currency pair at close to resistance levels.
|  | TradersLaboratory decodes Range Trading
Range trading is based on the fact that prices form channels independent of whether prices are trending upwards or downwards or sideways. It assumes that 80% of the time, the candlesticks will bounce up from lower channel trendlines and retreat from upper channel trend lines. By selling at resistance and buying at support levels, a trader may be able to profit from these moves in the market. Pivot points also form a basis of horizontal range trading, as opposed to use of ascending channels for uptrend range trading and descending channels for downtrend range trading. |
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