Many times it has been commented that Trading is simple, and for me, as a user, this seems to be a very true statement. Note: Simple, not easy. Part of that simplicity is given by a very easy strategy to execute according to the user's objectives. In this article, the keys to trading a range in a very simple way by adjusting to market conditions will be provided.

70% of the time, the market is range bound. A range is a period where we have neither an uptrend nor a downtrend. Basically, for most trend-seeking users, ranges are very boring. How to define a range?

To define a range we must have two support points at the same height and an opposite point, as shown in the following chart:

Note that the wicks are at the same low as the next high. Once we have defined the range, we must define the buying and selling areas in that zone of the range. These areas will be defined by the wicks that have been left, in this case, the upper ones will form a Short area marked by the purple box and the lower one will be the buy area. The red line in the middle will be our Profits target. The user should define the middle of the range to set the Take Profit order. 

The strategy is to take advantage of this range as much as possible. Entries will be made in the buy or sell zones and the take profit should be set to the mid-range line. I recommend that you use high leverage to get the most out of this range but that your loss does not exceed 0.5% of your trading account. In this case, it’s a 5M chart. You can use the M15 chart if you want but this strategy is used for Day Trading or Scalping.

To enter you must also consider the candle, it must be a bearish reversal or bullish reversal candle as is the case with hammer candles.

In the chart above, we can see three clean and winning entries. The first in Long should have been taken when the price began to reverse and head back towards the center of the range. In the second (Short) we see a hammer candle, enter the close of that candle and look for the middle of the range again. The same for the third time (sales), because it is the same scenario. Then the price goes and breaks the range, thus invalidating those zones and we should no longer buy or sell there. Our Stop Loss must be located a little above (Short) or below (Long) the end of the range and the loss must not be greater than 0.5% of the Trading account.

9 trades have been won in a relatively short time and without having a high specialization in technical analysis. Entries are really easy and the Take profits must be settled at the middle of the range.

Make trading easy and your account will thank you.

Trading Tips:

• Keep it simple. 
• Please respect your Trading Account and your Trading Plan. 
• This strategy is designed not to lose more than 1.5% of your account daily and that implies that you cannot make more than three operations a day. 
• Set yourself a daily goal, it can be 3%-5% of your account. This is a M5 chart but users can use M10 or M2 candles. 
• It is a strategy for Scalping or Day Trading. 
• Use this strategy on Margin or Futures.

Disclaimer: 

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