How to trade within a range? 【For reference only】 Follow Black Panther Academy for more contract strategies, and join our live discussions at 9 PM every night on Binance Square.
For example: A range should have at least 2-3 significant tests (like double tops/bottoms).
Short selling: Enter short at the top of the range, take profit: the total length of the range is the profit target.
Stop loss: half of the total length of the range, or a valid breakout above the range.
Long buying: Enter long at the bottom of the range, take profit: the total length of the range is the profit target.
Stop loss: half of the total length of the range, or a valid breakdown below the range.
Volume correlation: When shorting at the top of the range, observe whether there is a decrease in volume during the rebound; when buying at the bottom, check if there is an increase in volume during the rebound.
Combine with trend direction: If the long-term trend is upward, buying at the bottom of the range is safer; if the trend is downward, prioritize shorting at the top.
Risk control per trade: The stop loss amount for each trade should not exceed 1-2% of total funds.
Position adjustment: Enter light positions when testing the range boundary for the first time; if there are multiple tests without a breakout, you can increase your position.
Avoid uncertain periods: Stay away from major data releases, as price gaps may cause stop losses to become ineffective.