Forex | How To Trade Ranging Markets Like A Pro
Ranging markets happen all the time. As a trader, you should have a good strategy on how to trade ranging markets. In this video, I will cover a couple of ways that you can use to trade a sideways market. And as usual, I will also cover all the major currencies, and look at what trade ideas there is for the upcoming week.
Weekly Trade Ideas for Gold, EURUSD, GBPUSD, USDJPY, USDCAD, USDCHF, NZDUSD, AUDUSD.
Many traders will argue, that ranging markets are not the best way to make money in trading. But what to do if the market is in a range more often than in a trend? Isn’t it a good idea to have tools for that market conditions as well? My answer is absolutely it is a good idea.
The definition of ranging market
When a market is considered a ranging market, is when the price bounces between two different price levels without making a new high or a new low. It’s like a Tennis game, where the players stand on opposite sides of the court and take turns volleying the ball to one another throughout the match. In this case, the players are the traders that are participating in the market at this very moment. Every time the price reaches let’s say, $100, buyers enter the market and buy at that level, this buying volume adds pressure and ake the price move higher since there are more buyers willing to buy at $100 then sellers. Now, on the other side of that tennis court, you have the sellers. They are willing to sell as soon as the price reaches $110, and they do that each time the price reaches the level pressuring prices lower. This will keep going until something changes in the fundamentals, a new piece of evidence that this price range is not a fair value anymore. When that happens, you will see the breakout and probably a new trend just started.
Watch the video for the details on how to trade those ranges, with an explanation about trade entries, Stop-loss placement, and Exit targets.
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