1. Range Trading
• Identify the range: Determine major support and resistance levels using tools such as bar charts or candlesticks.
• Buy near support and sell near resistance: Place a buy (long) order when the price approaches support and a sell (short) order when it approaches resistance.
• Stop loss: Place a stop order just below support (for longs) or just above resistance (for shorts).
• Take profit: Target the edges of the range to maximize profits.
2. Breakout False
• Spot false breakouts: During a sideways market, false breakouts are common. Watch for price to break above support or resistance but quickly return to the range.
• Entry signal: Enter opposite to the breakout (short if the breakout is above the resistance, long if below the support).
• Confirmation: Use low volumes on the breakout to recognize the falsity of the movement.
3. Strategy with oscillators
• Use technical indicators such as RSI, Stochastic or MACD to identify overbought (near resistance) or oversold (near support) conditions.
• Buy signal: When the oscillator is oversold, go long.
• Sell signal: When the oscillator is overbought, enter short.
4. Mean Reversion (Return to the mean)
• Calculate moving average: Applies a simple or exponential moving average to the chart.
• Signal: Go long if the price moves significantly away from the average and tends to return towards it. Or go short if the opposite happens.
5. Scalping and intraday trading
• If the range is narrow, scalping may be a good option.
• Quick Signals: Use shorter timeframes (1 minute, 5 minutes) to capture micro price movements.
• Risk Management: Given low volatility, keep position sizes small.
6. Bollinger Bands Strategy
• Buy at lower margins: Go long when the price touches the lower band, signaling a possible bounce towards the center of the range.
• Sell at upper margins: Enter short when the price touches the upper band.
• Confirmation: Use volumes or other indicators to support the decision.
General advice
• Risk Management: Do not risk more than 2-3% of your capital on a single trade.
• Patience: Wait for confirmation before entering into a position.
• Adjust the timeframe: Sideways markets can last for weeks or hours. Choose a timeframe that matches your strategy.
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