Forex How do you trade a ranging market?

[Victorial]

Have you heard of a ranging market? Experts will warn you to stay clear of a ranging market while some will tell you that you profit from trading a ranging market. I guess it all boils down to your decision and intuition. As a forex trader with little experience, I have tried to learn how to truly profit from a ranging market with a demo account but it has not been successful.

A ranging market is a type of market with no clear direction. A ranging market will form one or two contrasting candlesticks continuously with lower lows and higher highs. This can be spotted using the lower time frames that can easily smell out the market noises. You can use the 5 mins chart to confirm a ranging market. For example, two bullish candles will form and reach a new height to the upside only to be followed by two bearish candles that will close at exactly where the two bullish candles open or a little bit lower or higher. This type of market can occur for hours as the market has no direction.

My last trade fell into a ranging market and I was very scared cos I took the signal late. In this type of scenario, the best shot is to exit for me with little loss or no profits at all.

If you were caught in one, how do you trade a ranging market?

 

[moonchild]

My mentor advised me to stay away from a ranging market, but I have a coconut head, lol, I trade the ranging market but most of the times if it's not ranging on the 4h of the I just forget about it, but if I confirmed a ranging market on the 4h candles I'll go to the lower time frames, and look for structure there's certainly a structure if such occur, from there I'll be able to get in, you know trading can be tempting a times especially if you're a scalper you just want to get in and out and make profits lol.

Ranging market on the higher time frame can be profitable on the lower time frame because there's certainly a structure, right now I'm a bit busy, if I open my chart and I see a ranging market, I'll just close my chart and come back later, I only trade higher time frames and you know such translates too trading less and less, so there's no room for taking risks that are not worth it, but bro when I was actively scalping, I trade anything and everything haha

 

[Kingstone]

My mentor will always tell me to stay clear of a ranging market. The ranging market can be so deceitful. If you want to profit from a ranging market, you will be buying and selling at the same time. When you reach the lower low, you will exit the sell and enter a buy signal. Then when the price forms a higher low, you will exit and place a sell trade. It is not a straight road like that anyway. I do not pray to be stuck in a ranging market cos I will be scared that the market can move in any direction very soon and I might not be lucky it is ready to break out from the ranging market.

For the ranging market, I check the higher time frame but only the 1-hour chart. I think it is the best for scalpers. Trading can be very sweet if you know what to do and when to do it.

 

[Setho]

One thing I particularly belief is that the market is never trading on a straight line and as such you can never see that the market is ranging but instead it is moving within a particular zone. This is why I particularly believe that whenever the market is in a period of consolidation it is a good time for scalping between resistance and support levels in order to be getting small profit within sometimes and if I am able to detect that there is a clear indication of reversal then I am going to close all my positions and then wait till it has flipped.

 

[Asahi]

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