Range Trading Strategy

Trade within defined support and resistance.

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What Is Range Trading?

Price moves between support and resistance. Buy low, sell high.

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Range Types

1. Horizontal Range

Resistance
━━━━━━━━━━━━━
    ╲      ╱
     ╲    ╱
      ╲  ╱
━━━━━━━
Support

2. Trend Channel

        Upper
          ╲
           ╲
            ╲
             ╲
              ╲
             Lower

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Range Trading Rules

Buy

1. Price at support
2. Signal to buy
3. BUY

Sell

1. Price at resistance
2. Signal to sell
3. SELL

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Stop & Target

Element	Value
Buy stop	Below support
Sell stop	Above resistance
Buy target	Resistance
Sell target	Support

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Common Mistakes

1. Fighting Breakout

Fix: Exit when range breaks

2. No Confirmation

Fix: Wait for signals

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Key Takeaways

1. Buy support — Sell resistance
2. Exit breakout — When range breaks
3. Signal entry — Wait for confirmation
4. Clear levels — Define range

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Related

swing-trading.md >>>

breakout-strategy.md >>>

price-action.md >>>

Buy low, sell high.