Trading Strategies
Range Trading
Buying the low edge and selling the high edge of a sideways market, profiting from oscillation instead of direction.
In plain English
When a market balances, price rotates between defined boundaries. Range traders fade the extremes with stops just outside the edges and targets back across the middle, collecting the rotation repeatedly until the range breaks.
Most sessions are balance rather than trend, so the style offers steady at-bats, and its structured stops fit evaluation risk math well. The account-killer is refusing to accept the breakout when it finally comes; a range trader's worst enemy is one more fade.
- ES holds a 5010 to 5022 range through lunch.
- A trader buys 5011 and sells 5021 twice, then stands down when 5022 breaks on volume.