Trading range strategies


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The temptation to trade a lot and make a lot of money 8775 right now 8776 is one biggest killer of forex trading acccounts.

9Intra-Day Trading Strategies You Can Use Right Now!

Even forex traders with limited experience start to realize that we are not trying to capture every market move. We want to improve our odds and reduce our frustration by filtering, for high-probability trades. The combination of trend and Fibonacci techniques can provide powerful signals for higher probability trading. We already know that trend-lines have some validity, an [.]

Trading Range - Investopedia

The problem with this approach is after you change the length to (yes people will go to decimals), 85 and back down to 75 it still comes down to your ability to manage your money and book a profit.

Bollinger bands work well on all time frames. Remember, price action performs the same, just the scales of the moves are different.

MOMENTUM FILTER (Stochastic Oscillator 69,7,8)
We recommend to use a simple Stochastic Oscillator with settings 69,7,8.

How do I trade it?
When all the conditions are in place, it signifies a significant price move is ahead as indicated within the green circles above.
A BUY signal is generated when a full candle completes above the simple moving average line.
And.

A much easier way of doing this is to use the bollinger bands width. In short the the bb width indicator measures the spread of the bands to the moving average to gauge the volatility of a stock.

Setup #7 on the chart
Similar to setup #6, price, after a few days of rally, it came back up to an overbought stochastics zone ( above 75) and is now trading around a major resistance zone. A trader will be marking this area as bearish and switching to intraday charts to seek a bearish reversal price pattern.

You can divide you position into 8 equal parts and set limit orders based on the logic above:
6/8 at 75MA,  6/8 at role reversal,  6/8 at 55% Fib retracement. This way you lower the risk and increase the odds of getting filled.

By using a day trading strategy, you remove the emotional element from the trading decision.
A trading strategy requires a number of elements to be in place before trading.
So, when those elements are in place, you place the trade.
It is a binary decision rather than an emotional decision. All other actions are off the table, by following a trading technique you avoid the cardinal sin of trading, that is, over trading.


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