Mind Math Money Range Trading Strategy

How often does the market trade sideways?

70 to 80% of the time

What does Range Trading focus on?

Buying at or close to support and selling at or close resistance during non-trending conditions

Range Trading definition (2 points)

• Strategy based on price oscillating between support and resistance

• Traders aim to profit from price bouncing back and forth within a defined channel

Sideways Market definition (2 points)

• A market with no clear uptrend or downtrend

• Price moves horizontally with minimal direction

Choppy Market definition (2 points)

• Erratic price movement with no clear support/resistance

• Often whipsaws traders and is harder to trade than clean ranges, which is with they should typically be avoided

6 Things to Look for to Identify a Range-Bound Market

1. Repeated touches of similar highs and lows

2. Use a flat 50 or 100-period moving average as a visual guide

3. ADX below 20-25 suggests a weak or absent trend

4. Bollinger Bands that are narrow and parallel often signal consolidation

5. Price moving sideways on higher timeframes confirms larger structure

6. Use ATR to spot low volatility phases typical of ranges

Core Range Strategy Concept: Support and Resistance Bounce

• Buy near support, sell near resistance

• Avoid trading in the middle of the range

• Use tight stop-losses just outside the range

• Wait for confirmation before entering

• When the price dips below support, stop losses are triggered, which leads to increased liquidity and therefore a good entry point for smart money, which pushes the price up

• Look for hammers at support levels before a reversal to the upside