While trading in a range, traders count on the fact that the prices will trade between the same horizontal levels during a certain period of time recoiling from both resistance and support for many times. It’s assumed that no matter where the exchange rate goes, it will return to the central reading. The goal of a trader is to benefit from the price’s fluctuations around this central mark.  

Important tips for range trading

  • Be more careful with the leverage.
  • Mini and micro lots allow placing bigger stops.
  • Don’t use scaling in and scaling out.
  • Risk/reward ratio is 1:1.
  • Stop Loss is moved to the breakeven slowly.  

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