Tags Posts tagged with "Range Trading"

Range Trading


All serious money managers know that the smart money is made not when the market is stable but when the market goes through a sudden state of change. Take for example, the end of a bull run or the imploding of an asset bubble.


Range trades can be an effective strategy but detecting and analyzing them is a major challenge. This article describes a strategy for trading ranges using adaptive linear regression channels.


The idea behind this scalping strategy is to catch the short wave retracements that take place when the market reaches a peak overbought or oversold state. It is best applied to ranges.


Range trading is a simply yet powerful trading technique in forex. It complements a number of other strategies such as trend following and breakout trading but many use it successfully on its own.


Pivots are a tool often used by range traders and day traders to work out likely reversal points based on the previous day’s price activity. The beauty of pivots is their simplicity.