Forex Range Trading Strategies

Maybe you do not know, range movements in Forex trading in statistic are occur almost 70% of market movements. Based on this we can assume that the range trading can be very profitable. There are so many forex trading systems that available in the internet. Now I want to share about this range trading technique.

Generally foreign exchange traders do not like range trading. They usually look for trending market or trend trading. But when you look for trend trading then in other words you only take 30% opportunities in market fluctuations. Let's say you have 50% winning trades then you only take 15% of all market movements.

Please say to your self are you trade just for fun or for money? I understand this is stupid question but it's importance.

If we trade looking for money, then we should include range movements also in our trading strategy to take 70% opportunities. OK let's start talk about Forex range trading strategies.

The Important section of Forex Range trading

Just like other trading systems, the most important method of range trading in Foreign exchange market is to keep away on the wrong direction of breakout. Just look for psychological level or strong support and strong resistance levels then open a trading position. But when the market price begin to breakout the level, the market price became against our trading position. In this case risk or money management is applied to protect your trading account from big loss.

Support and resistance levels are the main tools in range trading strategies. These levels assist define whether a price is moving in trend, moving in range, or in the breaking movement. When the market price moves between the levels (support and resistance) then we can assume the market is in range trading movement. When the market price crosses the level (support or resistance) then we can assume the market is in breakout trading. And when the market price cross the level and then correction and reverse again to the breakout direction at lower resistance or higher support then we can assume the market price is in trending movement.

How to Range Trading

Just like other trading strategies also, this technique has so many various systems to range trading. You also can use Forex technical indicator in range trading.