Tricks When Flat Forex Market
When the market is in “flat” or “ranging”, sometimes buying and selling occurs at random. There are some forex traders who try to “buy at low prices and sell at high prices.” This may seem simple, but in practice there are tricks that you must understand.
Trading Range Aids
Forex traders who use ranging strategies greatly utilize price patterns in the chart. In addition, technical indicators as a tool, are used to optimize opportunities for buying or selling.
Normally, forex traders will recognize various levels of support and resistance. This is to be used as a reference for buy or sell price levels. This makes trading when the market is ranging occurs in grace support and resistance levels. In that area, forex traders are looking for profits from price conditions that are mobile ranging.
Ranging Price Movements
Often the price of mobile is in the area of support and resistance area for days. And sometimes within a week before a breakout occurs.
To try to take advantage of the situation, many forex traders must have a strategy. Like opening short positions at the resistance level, or taking long positions in the support area.
In addition, the stop-loss level can be above or below the support or resistance level. This is to limit the risks that might occur. And also ensure that losses can be minimized if the price moves a breakout.
The most frequent moment is when the price of a mobile breakout with great strength. Then managed to break the resistance level or support. After that the price tends to be mobile to the next target of the movement. Of course with the same setup as the vertical distance of the projected grace line. Namely from the price level before a breakout occurs.
Some forex traders will take advantage of these opportunities namely by:
- buy in the “dip” area when prices try to mobile up or vice versa.
- Place the stop loss position when the price of mobile ranging.
- Place the take profit level.
For example: if the price moves to breakout then an option is open to open a BUY position. Forex traders will likely measure the breakout level to determine the position of the SL and TP.
Therefore regular and consistent training must be done by you. To try to practice this system, there’s no harm in opening a demo account first. In addition, discipline so that these ranging trading systems can work well from time to time.