Range Trading
Strategy involving buying at the lower boundary of a price range and selling at the upper boundary.
Beginner-friendly explanation
Range trading involves buying when the price is low and selling when it's high within a specific interval. Example: If Bitcoin regularly moves between €29,000 and €31,000, you buy near €29,000 and sell near €31,000.
Intermediate-level insight
Range trading exploits sideways market movements. Traders use technical indicators (RSI, Bollinger Bands) to accurately identify range boundaries. Example: You use Bollinger Bands to clearly identify levels for buying or selling in a consolidating market.
Advanced perspective
Range trading requires deep technical analysis to clearly distinguish consolidation phases from trend beginnings. It can incorporate complex strategies like order grids or advanced conditional orders. Example: An experienced trader places a limit order grid to effectively exploit a range-bound market while using adaptive stop losses to manage risk in case of breakouts.
Markets & Order Types
range trading, consolidation, boundaries, support, resistance, oscillation, Bollinger Bands