2 Specific Trading Strategies

A. Range Trading

This is the most classic and effective strategy in a sideways market:

Buy Support: Enter a buy position when the price touches the lower limit (the support level of the range).

Sell at resistance: Enter a sell position (short) when the price touches the upper limit (the resistance level of the range).

Clear Targets: Your profit target is often the opposite limit. For example, if you buy at support, you aim for resistance.

Tight Stops: Place a stop-loss just below the support (for a buy) or above the resistance (for a sell) to protect yourself from a bearish or bullish breakout of the range.

B. Fake Breakouts

Breaks out of a range are often false signals. Wait for confirmation:

Wait for Re-entry: A common trap is to take a position at the breakout. A safer approach is to wait for the price to re-enter the range before taking a position in the opposite direction (sell if the upper limit has been falsely broken).