What is Range Trading?
When you don’t have an uptrend or a downtrend, you have what is called a Range. In other words, you have No Higher Highs, and No Lower Lows. Price is simply moving sideways in a nice and concise Range, which provides enormous trading opportunities.
In the video above, we squeezed out 400 Pips in 1 Week with the EUR/JPY, with our Forex Range Trading Strategy. When price is not trending up, nor trending down, you need to implement our Forex Range Trading Strategy.
Forex Range Trading Strategy
Step 1: Entry – Look for Reversal Patterns at either the Range High or the Range Low.
Step 2: Stop Loss – Comfortably placed Above the Range High or Below the Range Low.
Step 3: Take Profit – Opposite Side of the Range.
Once price executes your Take Profit setting, now price is at the opposite side of the Range. You can look for a Reversal Pattern and a trade in the exact opposite direction. If a Reversal Pattern is present, then you initiate Steps 1 thru 3 above for a trade in the exact opposite direction. In other words, you can continually trade from Range High to the Range Low and vice versa – from the Range Low to the Range High. Simply follow our 3 Step Forex Range Trading Strategy, when you identify Reversal Patterns at the Range Lows and the Range Highs.