πŸ“ˆ Price Action: How to trade ranging markets, range bound markets and consolidation markets BO Forex

1,677 views Β· Published 18 January 2018 Β· 5:27 Β· Indexed 24 October 2026

Channel: BO Turbo Trader Β· 2018 Β· Education

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Indicators: 
EMA 3     (blue)
EMA 20   (yellow)
EMA 50   (orange)
EMA 100 (red)
EMA 200 (purple)

Bollinger Band Period 20 Deviation 2 (green)
Bollinger Band Period 20 Deviation 1 (white)

A range-bound market is one in which price bounces in between a specific high price and low price. The basic idea of a range-bound strategy is that a currency pair has a high and low price that it normally trades between. The market is said to be ranging when the price of a financial instrument is making the same highs and lows a number of times. The most common definition of a ranging market is when the price hits the same support and resistance levels three times. A sideways market occurs where the price trend of a certain trading instrument, such as a stock, has been experiencing neither an uptrend nor a downtrend. Instead, the price activity has been oscillating between a relatively narrow range without forming any distinct trends.

Range trading is a strategy whereby a trader identifies overbought and oversold areas (or support and resistance areas) and buys at the oversold area (support) and sells at the overbought area (resistance). The strategy works well in markets that are meandering up and down with no discernable long-term trend. A range-bound market is observed as a trading strategy that identifies stocks trading in channels. 

A market that is trending in one direction or another. A bull market is trending upward, while a bear market is trending downward. A trending market can be classified as such for either the short, mid or long term. Range trading is one of many viable trading strategies available to Forex traders. These strategies are generally associated with lack of market direction and can be a handy tool to have in the absence of a trend. At its core, range trading strategies can be broken down into three easy steps! A trading range is the spread between the high and low prices traded during a period of time.


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