Forex for Ambitious Beginners by Jelle Peters

Author:Jelle Peters
Language: eng
Format: epub
Tags: forex, currency market, forex trading, currency markets, currency exchange, forex course, currency trading, forex market, currencies, forex ebook, forex trading tips, forex strategy, learn forex, forex beginner book, forex guide, online forex trading
Publisher: Jelle Peters

Chapter 15 Range Trading

Range trading is only interesting when markets are relatively calm. Picture for yourself a currency pair with a price development that resembles a little creek, happily meandering back and forth between clear resistance and support levels, without settling itself on a clear direction. As a trader, you could identify those resistance and support levels and pick trade triggers, stop losses and profit targets based on those levels. That is range trading in a nutshell.

The Nuts And Bolts Of Range Trading

Range trading is putting on positions with the intent to profit from temporary ranging movements of a financial product. Although nothing beats the thrill of being on the right side of a trade when prices explode in break out trading ― and the profit per trade in range trading is often less spectacular ― your chances of success are much higher with range trading. Check out the next chart to get a quick idea of what range trading is all about.

This is a candlestick chart of the EUR/CHF, an old favorite of range traders, because its price action is so often sidewards. (A notable exception was 2011, when the franc attracted many investors seeking a safe haven after trouble began surrounding the eurozone. This pushed the franc ever higher against the euro, until the Swiss National Bank decided to intervene on the forex)

That example notwithstanding, the usual ranging of the Swiss franc has everything to do with the fact that the Swiss economy is very dependent on the Eurozone (almost all Swiss exports go to the Eurozone). A not surprising fact, given that Switzerland is surrounded by EU countries. This dependence normally ensures a very stable relationship between the two economies and their currencies.

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.