I need a range trading setup

aparoid89

Active member
146 1
So far I just use trend following strategies but this is no use when most days the markets are not trending.

So far I've tried having a stop loss slightly away from support/resistance and a take profit at the resistance/support, then when I feel the price is going to bounce off support/resistance I buy/sell.

Any other things to try?
 

natureboy

Established member
770 2
Well
1) How do you know when the market is in a range? You could look at declining ADX below certain value, or declining volatility band width.. need to experiment
2) The patterns i use are very good for finding highs and lows in a range, but then again so are horizontal lines
 

aparoid89

Active member
146 1
Well
1) How do you know when the market is in a range? You could look at declining ADX below certain value, or declining volatility band width.. need to experiment
2) The patterns i use are very good for finding highs and lows in a range, but then again so are horizontal lines

1) Well when the price is bouncing off between support and resistance that has been hit 2 or more times.

2) My question is less to do with identifying the range and more to do with what signal would you wait for before shorting at resistance or buying at support. Also would waiting for a breakout be preferable to trading the range?
 

Nikhil Dogra

Member
53 1
I use ADX rises from lower range > 20 i use oscillators
ADX rises from 20-30 i use indicators
ADX falls from 30-40 range i use indicators
ADX falls from less than 25 i use oscillators

Identifying whether market is in a range is easy , it gives so many clues like orderflow is balanced or as someone else pointed out price bouncing off supports/resistances multiple times or Volatility shrinks when its in a range or when volatility is not that low and not that high a very bad type of range unfolds which is expanding forming a new high only to fall below and form a new low before moving back up again, volume decreases , open interest is constant or decreasing.

I personally don't trade ranges anymore until and unless those are defined on Daily charts , not worth the hassle for my personality type to day trade ranges on live time frames.
When i did trade ranges on 5 min charts i used camrilla pivots and longed and shorted appropriately after seeing orderflow with tight stops.. The win% was above 50 but gains made was quite less and came with a lot of headache and sweat on the brow.
 
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natureboy

Established member
770 2
You could use the patterns I use also with a defined move in the trade direction as trigger. You could fit a momentum oscillator to task as well
 
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0-lurker

Newbie
2 0
I wont go into how I determine a range and how I trade it as its my first post but I can tell you trading in a range is not a good idea unless you like getting cut to pieces:idea:
 
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