It's my daily bread. I wait patiently, frame the levels and when the price decides, I go. And if there's no clear entry, I don't operate. The key is to accept that sometimes the best trade is to do nothing.
It's my daily bread. I wait patiently, frame the levels and when the price decides, I go. And if there's no clear entry, I don't operate. The key is to accept that sometimes the best trade is to do nothing.
And what do you do when there is a false break and the price goes back to the middle of the range? Do you stay watching while the market laughs at you? Because that happens more often than you think. I prefer fishing within the range, gives me more control.
The important thing is to have backtesting that supports what you do. I have more than 800 transactions registered only in lateral structures. Results? Constant profitability with low risk. If you don't like to operate in range, perfect, but don't say it doesn't work.
Totally. Everyone has their style. What I can�t stand is the elitism of some who think it�s only worth trading trends. If a system is profitable and validated, it doesn�t matter if it�s in ranges, trends, news or full moon.
Do you want to know why they hate ranks? Because they don�t shine on Instagram. You can�t upload an epic capture of +300 pips if you spend it taking out 12 pips per trade. But those who live on this know that those �12 pips� daily pay your bills with peace of mind.
After reading all the comments, I want to provide a more structured reflection on why trading ranges can be a strategy not only valid, but even preferable for certain trader profiles. The market does not move in trend most of the time. Various technical studies and empirical observations show that between 60% and 80% of the time the price is within a lateral or consolidation phase. Ignoring that behavior or discarding it by "noise" is to waste a huge part of potential opportunities. One of the clearest advantages of operating in ranges is that the levels of invalidation are easier to define. Having clearly defined the extremes of support and resistance, the trader can manage the risk more efficiently. In addition, the risk/benefit ratio can be even more favorable than in the trends if the entries are executed with discipline. Unlike the trends, where the setbacks can easily notice two stops, in a well defined range the price respects much more limits. Also, the range allows for a smoother operation, without the constant pressure of "following the price".
Thank you for this comprehensive analysis, it is good to read something with substance.
And how do you determine when a rank is no longer operational?
It opened my mind to rethink my operation.
Impressive the clarity with which you explained it. Thank you!
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