{"id":512057,"date":"2023-02-15T15:44:03","date_gmt":"2023-02-15T15:44:03","guid":{"rendered":"https:\/\/www.publicfinanceinternational.org\/?p=512057"},"modified":"2023-02-15T15:53:23","modified_gmt":"2023-02-15T15:53:23","slug":"trading-ranges","status":"publish","type":"post","link":"https:\/\/www.publicfinanceinternational.org\/trading-ranges\/","title":{"rendered":"A Guide to Trading Ranges"},"content":{"rendered":"\n
Range trading is a technique <\/strong>traders use to trade in a range-bound market. Range trading is a strategy that can be used to trade any kind of financial instrument. As long as a trader can identify a price range within which the asset price is fluctuating, they can buy and sell within that range to their benefit.<\/p>\n\n\n\n
Several strategies within range trading can be used for specific markets or situations. In all range trading strategies, it is necessary to define the price range using support and resistance levels.<\/p>\n\n\n\n
The ideal scenario is that the market conditions show a clear trend, whether that is upward or downward. However, most of the time, the market has no clear direction. Using the support and resistance levels, a trader can determine the direction the market is heading in and how intensely it is moving.<\/p>\n\n\n\n
This way, the trader knows what the next price change is and how significant the price change can potentially be.<\/p>\n\n\n\n