So, as we got over a trending markets, it is time for us to look right in the eyes of its more unstable but more fun brother – range-bound market.
It might be more fun to trade in the conditions of the range-bound market as the price is always swinging between the price points, but it is only fun in case you are looking for that extra dosage of adrenaline. Otherwise you are simply going to go gradually bold from all the nerves that you are going to experience.
And here comes the time when I have to break the bad news to you. Range-bound market is the market condition that you are going to see more often than its stable counterpart. Yes, that means that we have more chance of going bald than to have all of our hair before we retire.
But come on! That is the fun of it, isn’t it?
So, what is the range-bound market? It is the type of market condition where the price bounces between the specific high and low price points. The highest price serves as a resistance level. The lowest serves as a support level.
These points seem quite unbreakable as the price never or almost never breaks the levels.