Forex Range Trading Strategies

I traders and in today’s video I’m going to be walking you through how to trade ranges and I’m going to also give you some of the advantages of trading ranges and actually look at some of the disadvantages of chaitin enrages, so this is to cut the charts now and the great thing about trading ranges is it’s a very simple for you to do as a Forex trader, so, if you are new forex trading you’re looking for a sort of easy way to kind of make it into the markets and actually start making some money trading ranges is a great Avenue for you to go down, if some advanced it’s very simple and anyone can pick out these opportunities and they show you how easy is in today’s video I’m actually going to walk you through looking at a simple chart a simple daily chart here as you can see on screen this is a chart of the footsie 100 okay it doesn’t really matter what instrument you’re going to be trading, if it’s of character of stock or commodity or whatever it is it’s all pretty much the same this is going to work on every time frame I suggest the higher time frame you go up the easier it is to actually go through and what are trading ranges it’s very simple is what happens is when price is stuck between two regions okay and I’ve drawn two black lines here one black line here one black line here to highlight the two areas, so what tends to happen is price will tend to stick between these regions as you can see the market moved up from this particular region it moved up in the previous times, but it started to become significant here, so the market pushes up to the top where this black line is and it starts to sell off and it actually sells off very quickly now I’m not telling you to take a short here, because there’s no way we would have known to take a short position based on trading ranges, but what we actually do know is that price moved up from this region and it stopped here, so as the markets dropping off you can draw this line on and you can draw the line on up here and say to yourself ok these are two potential regions the market comes back to this region and all you have to do is buy at this region ok and you can see from below the line the market doesn’t really go beneath this area too much okay, so this is minimal risk in this little region here, if that compared to maximum reward okay, so look at the overall risk we’re putting on the table potentially compared to the amount of pips you can actually be making, if we’re trading a range, so what do you know the market pushes up and where does it stop it stops right in this same region from where it dropped from before, so what you can start to see is when you pick out these potential regions and you pick up these opportunities you’re starting to get ahead of what’s actually happening, so they’re soon as the market is bouncing off here you obviously have the opportunity to decide where you’re going to put your potential tape profit you can say okay and win a risk and we’re going to be looking to taper off out here I might be looking to take profile here well he might be trying to get the full scoop of the move or that’s entirely up to you I wouldn’t recommend always going for before me, because you never know what’s going to happen normally going halfway is more than enough and as you can see that’s at least four or five to one in regards to risk to reward, so you’d be risking this little bit to make it around 5 to 1 in this region and as you can see this is a daily try, so it’s only a matter of days that this would have taken to actually get filled and like I already mentioned this can work on any timeframe, so don’t be alarmed work for any timeframe, so look what happens here this is one of the first disadvantages I’m going to talk about, because we already established an advantage of how it’s, so easy to pick out these levels and pick out the trades what tends happen sometimes with ranges is it won’t go all the way, and, if this comes back to the point I just made about profit taking, so imagine, if you took a sell position here knowing that the market dropped from here vigorously before you can see price tops really quickly, but look it doesn’t drop all the way to the bomb, so, if your target was actually in this region you might not hold it’s not not even a match you wouldn’t have got filled on that trade, but, if you had decided okay I’m going to trade half the range you definitely would have got filled in this one trade now that’s two trades you would’ve just been making money off and where we’re at now, so the market has pushed back up to this region okay and try to break through didn’t have it the first time he’s tried it again and he tried a third time and all had all of this information this is free tab just try to break through the region and it hasn’t, so that’s three times the markets tried to move up and it’s been getting rejected, so more likely did not what do you expect well we’ve arranged obviously we’re talking about trading between the two regions, so, if you put a cell on top this you’re on here not quite halfway, but nearly would have got filled okay and we’re just waiting, so right now July 2014 as I made this video we’re looking to see what the footsie 100 is going to do in the future obviously going about what’s happened in the past we’re expecting the market had dropped back down to this region at some point and I’d wanted to make this quick video to show you how easy it is to actually pick it levels out okay the country does like this where price gets stuck between and obviously take trades what I want you to do, if you go away just for more context you can actually pick up locate a stone at her chart in the time frame I’d say 15 minutes and above to get the best results okay and just try and pinpoint levels where prices is stuck between two regions and draw two lands will destroy line at the top to align the bottom and see what happens okay, if you’re practicing and you’re not quite a live trader year all you have to do is draw the land, so on and take a demo trade and see how it goes, if you’ve actually got a live account and you are willing to test this out maybe you don’t want to put your minimum yo I’m sorry yo your normal risk on maybe you’re going to put half of that onto C and you’re going to be testing that out, but range trading is a great thing for you to do it’s, so simple yes it’s no let you see how done in the last couple of witnesses, so simply drawing two lands on and buying at the bottom and selling at the top this is the simplicity of trading and I don’t need to start making things harder than they need to be you can see looks a simple sell simple buyer simple sell simple sell and live with the results okay, if you take one of these trades and you lose okay you lose your minimum risk, if you win well you’re looking at five to one, if you, if you’re trying to go from the bottom to the top that’s ten to one okay sometimes going to work sometimes it’s not what you can do, if you are looking to go for a fool profit is as it goes up you can start to meet your take profit, so as it breaks through 50% of the range you can move your take profit to 50% okay, and, if it gets knocked out for at a profit at the end of the run, then you can do that, if not you take your half of the range and you live with the profit, so that’s pretty much it short video here just to give you some insights on how you can actually trade the range is a very simple strategy and you can start making money trading the forex markets thanks for watching the video.

This entry was posted in How to Drive Traffics, Passive Income Ideas. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *