How To Trade A Ranging Market In Forex Trading

[moonchild]

A ranging market occurs in forex when prices move sideways within a particular range without any clear direction. this market condition can be tricky to trade because you don't where it is going, but after reading this post you can make profits from it.

The first thing to do is to identify the range on your chart. you can do this by drawing support and resistance lines to establish the range's upper and lower zones. Once you have identified the range go to a lower timeframe and start looking for trading opportunities, I assume that you will draw your lines on a higher time frame.

One way to trade in a ranging market is to look for a price reversal at the range's support or resistance levels. You can enter a buy or sell order when the price bounces off the range's zones, with your stop-loss order placed just beyond the opposite zone, in tight spot, you should risk less in a ranging market because it is not certain.

Another way to trade in a ranging market is to use oscillators and indicators, such as the Relative Strength Index (RSI) or the Stochastic Oscillator, to identify overbought and oversold conditions. You can enter a buy order when the oscillator is oversold and a sell order when it's overbought, leave a feedback if you enjoy this article

 

[Asahi]

Some traders feel jolly trading in the ranging market because they can derive quick market on the market. But right market forecast is needed to make the best use of available opportunity. Eurotrader provides signals at times to help traders.

 

[FXOchartist]

The forex market prices can figured many patterns in the chart, sometimes the trend move strong trending market uptrend or downtrend, sometimes the prices move flat or sideways in small range market.

Usually the good indicator for range trading is the Bollinger band, in the range market the bands line symmetrically draw flat line, were upper band could be resistance and lower band could be support.

Trading with FXOpen broker, I always use stoploss and trying to enter in best zone of prices.