EDUCATIONAL POST, RANGING MARKET
Hello Traders and everyone, I am Hadi Karaali, Known as SNIPERS_FX
If you like this educational idea, Do not forget to support with a like and follow.
A ranging market in financial markets refers to a period when prices move within a horizontal range, characterized by a lack of strong upward or downward trends,
Today's idea will be how to spot rangy markets and how to deal with it on higher and lower time frames.
1- As it's shown on the picture, as the price is no longer strong making new higher highs or lower lows to be identified as an over-all trend, instead price manages to be forming new Equal highs and lows.
2- Certainly, your observation aligns with technical analysis principles. In a ranging market, after the formation of two consecutive equal highs and equal lows, traders often anticipate the possibility of a continuation of the range,
3-As the market approaches these established levels or zones, zooming into lower time frames becomes a common practice to identify potential reversal patterns.
4-Traders may use various technical indicators and candlestick patterns to spot signals for a reversal or a breakout, adjusting their strategies accordingly to capitalize on market movements within the established range.
Meanwhile, Traders often focus on trading within the established boundaries of a ranging market until a significant breakout occurs.
The breakout, whether upward or downward, can signal a shift in market sentiment and the potential emergence of a new trend. When one of the established zones is decisively broken, it may indicate a change in momentum, leading traders to adapt their strategies to align with the developing bullish or bearish trend,
Recognizing and reacting to these breakout points is crucial for traders seeking to stay ahead of market shifts and capitalize on new trends as they emerge.
If you like this kind of educational posts don't forget to like and follow
If you like this educational idea, Do not forget to support with a like and follow.
A ranging market in financial markets refers to a period when prices move within a horizontal range, characterized by a lack of strong upward or downward trends,
Today's idea will be how to spot rangy markets and how to deal with it on higher and lower time frames.
1- As it's shown on the picture, as the price is no longer strong making new higher highs or lower lows to be identified as an over-all trend, instead price manages to be forming new Equal highs and lows.
2- Certainly, your observation aligns with technical analysis principles. In a ranging market, after the formation of two consecutive equal highs and equal lows, traders often anticipate the possibility of a continuation of the range,
3-As the market approaches these established levels or zones, zooming into lower time frames becomes a common practice to identify potential reversal patterns.
4-Traders may use various technical indicators and candlestick patterns to spot signals for a reversal or a breakout, adjusting their strategies accordingly to capitalize on market movements within the established range.
Meanwhile, Traders often focus on trading within the established boundaries of a ranging market until a significant breakout occurs.
The breakout, whether upward or downward, can signal a shift in market sentiment and the potential emergence of a new trend. When one of the established zones is decisively broken, it may indicate a change in momentum, leading traders to adapt their strategies to align with the developing bullish or bearish trend,
Recognizing and reacting to these breakout points is crucial for traders seeking to stay ahead of market shifts and capitalize on new trends as they emerge.
If you like this kind of educational posts don't forget to like and follow
Telegram channel:
t.me/Snipers_F_x
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