Range trading is a trading strategy that involves identifying and capitalizing on price movements within defined support and resistance levels. Traders typically look for a market that oscillates between these levels, allowing for buying near support and selling near resistance. This approach often relies on technical analysis tools to determine these price thresholds. Range traders aim to exploit price fluctuations while minimizing risk, generally entering positions when the asset price approaches either the support or resistance levels. This strategy tends to work best in markets that lack a clear trend and often requires careful monitoring of market conditions to effectively adjust positions.
