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What is Range Trading Strategy?

What is Range Trading Strategy?
Range Trading includes the identification of support and resistance points that allow traders to trade around these key levels. This strategy works well in the market without significant volatility and no perceptible trend. Technical analysis is the main tool used with this strategy.

Duration of the transaction:

There is no transaction-defined length because the range-related policies can work for any time period. Risk management is an integral part of this method because eruptions can occur. Therefore, a range trader would like to close all positions related to the current range.
Entry / Exit Points:

Read: 15 Best Ways To Choosing A Trusted Forex Broker

Oscillators are most often used as timing tools. The Relative Strength Index (RSI), the Base Product Channel Index (CCI), and Stochastics are some of the most popular oscillators.

Price action is sometimes used in conjunction with oscillators to further validate beach-related signals or eruptions.
Example 1: USD / JPYRange Trading



USD / JPY USD / JPY fork trading has posted an extended extended range price level in recent years. The chart above illustrates clear support and a resistance band that traders use as entry / exit points. The RSI oscillator indicates the timing of the In / Out points, as indicated by the shaded areas blue and red - blue: overbought and red: oversold.

Distance trading can lead to profitable risk / reward ratios, but this translates into a very long time investment per transaction. Use the advantages and disadvantages below to align your goals as a merchant and the resources you have.



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