Range trading is a practical strategy for markets that move sideways rather than trend.

Range trading is a practical strategy for markets that move sideways rather than trend. The core idea is simple: buy near support, sell near resistance, and repeat while price oscillates within a defined band. This page explains how to spot reliable ranges, choose tools that confirm boundaries, and build a plan that balances reward with risk.

To identify a range, traders often combine price action—swing highs and lows—with indicators such as RSI, Stochastic, Bollinger Bands, or Keltner Channels. Volume and multiple timeframe checks help confirm whether a breakout is likely or if price is likely to revert. Clear rules for entries, exits, stop-loss placement, and position size are essential. Many traders aim for positive expectancy by risking less than potential reward and avoiding trades when the range is too narrow or choppy.

Range trading can suit forex, stocks, indices, and crypto during consolidation phases. With discipline, patience, and structured risk management, it offers consistent opportunities without chasing trends.

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