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The Basics on How to Range Trade

How To Range Trade

The ability to make a good profit with very little risk, in addition to easily identifying the normal high and low movement has made range trading become known as the best strategy for new traders to approach the market. However, to enhance your trading success, it is of utmost importance that you are versed with the basics on how to range trade, especially if you are just getting started.

Explaining Range Trade

Range trading is a simple, non-directional trending strategy which traders use in order to profit from the market. This market is easily identified by the levels of high buying pressure, known as support, and high selling pressure, known as resistance. Here, the trader will buy as the price moves to a lower support level, and sell as the price moves to a higher resistance level.

How to Range Trade

The trading opportunity, as you can see, rests between the support and resistance levels in the range. This doesn’t necessarily mean that it has to be high in order for you to profit, or even enter into trade. In fact, this strategy allows you to take advantage of the lower volatility horizontal movement in the market. Once (Read More….)