Learn the best strategies to earn profits on a ranging market in this video without relying on indicators that don’t work well in such markets. It’s imperative to identify ranging markets as well as draw key levels and observe price patterns to gauge entry signals. Narrow ranging markets necessitate a different trading strategy.

write 2100 words and add headings article based on this youtube script use 20 words in a sentence in maximum 25% of sentencesThis video is brought to you by pinex a cryptocurrency exchange with free built-in trading bots in this video i’ll be showing you the best strategies that you can use to earn profits on a ranging market so first an important concept that you need to understand is that in the world Of technical analysis there are two types of markets that exist trending markets and ranging markets trending markets is when the price is clearly moving in a definitive direction if it’s going up it’s called an uptrend and if it’s going down it’s called a downtrend now usually this is the type of market That traders prefer to trade on because the movement of a trending market tends to be more predictable on the other hand you have ranging markets which is a type of market where the price moves erratically without having a definitive direction now usually traders tend to avoid this Type of market because it’s a lot harder to predict where the price will go next another reason on why traders tend to avoid ranging markets is because most indicators tend to not work properly on them an example of that will be the mac the indicator so here if we try applying The mac the indicator on this ranging market you can see that it’s showing us multiple false signals and as a result we ended up with mostly losing trades now unfortunately ranging markets are pretty much unavoidable in fact studies shows that the financial markets only trend about 30 percent of the time while moving on a sideways range about 70 percent of the time this means that most of the time markets are actually ranging and so instead of trying to avoid them altogether why not try to take advantage of them and that is why in this video I’m going to show you the best strategies that you can use to earn profits on a ranging market so strap in because we’re going to go very in-depth so first in order to earn profits on a ranging market we first need to know how to actually identify them and normally Ranging markets are a lot easier to be identified after they have already formed but if they’re still in the process of forming it tends to be harder to spot and so a simple trick that i like to use to identify ranging markets as they’re forming is to pay close attention to the Market structure let me show you an example so here we can see that initially the market was clearly on an uptrend now ask yourself this why is this an uptrend well it’s because of how the price is structured here we can see that the price went up Made a pullback and comes back up again however notice that as the price goes up it actually breaks the previous highs and it did this multiple times forming what’s called a higher highs and higher lows because the highs and lows of the price is constantly getting higher and Higher which is why this whole movement is classified as an uptrend but notice what happens next we can see that the price went up comes back down but this time it failed to break above the previous highs and again you can see it happening the second time price went up comes back Down but failed to break above the previous highs and so at this point we can clearly see that the market structure had already shifted it went from forming higher highs and higher lows at first to then failing to form another higher highest twice and started moving sideways So based on this market structure we can already identify that the market is currently ranging now let’s look at another example so here we can see that initially the price was on a clear downtrend as it forms lower highs and lower lows next we can see that the price went down Comes back up but failed to form another lower lows then we can see that the price goes back down the second time comes back up and again failed to form another lower lows and so based on this we can clearly see that the market structure had already shifted It went from being on a clear downtrend to now moving within range now once you’ve identified a ranging market the next thing you want to do is drawing the key levels and so you can draw a level of resistance above and a level of support below here Now there are a couple of reasons on why we draw these key levels the first reason is because we want to determine the area of where the price is still considered ranging meaning if the price goes out of one of these key levels it shows us that the market is no longer ranging The second reason is because we’re establishing our trading zone so as long as the price stays within the zone we can still trade it using our range market strategy but bear in mind it’s very rare to find ranging markets that moves perfectly between key levels like this most ranging markets will actually look Like this where the price may not touch the key levels perfectly as you can see there are some candles that overlap the levels and even some that are not touching the levels at all and this is perfectly fine because remember we’re treating support and resistance as a general area not as solid lines Now once you’ve identified your key levels the next step is finding your entry signal so for your entry signal you want to take advantage of the price bouncing off those key levels let me show you an example so here we can see that at first the Price was in a small uptrend before it started moving sideways and so we can draw a level of resistance above and a level of support below here now if you look closely you’ll actually notice a pattern every time price hits a key level it tends to reverse from it as You can see price went down hits the key level and reverses upwards again it went down hits the key level and reverses upwards and the same thing is happening above here price went up hit and reverses downwards again it went up hit and reverses downwards Now as you look at the current price you can see that it’s touching the resistance level once again and so based on the previous pattern it may indicate that the price will reverse from this level as well so this is a good opportunity to take a short position But keep in mind there are also times where the price reverses even if it hasn’t hit the key level like in this example here we can see that the market is on range and so you can draw a level of resistance above and a level of support below here Next you can see that in the past price clearly respect these levels as it tends to bounce off after hitting them however if you look at the recent price we can see that the price went down and reverses upwards immediately without even touching the support level and after that Price went down the second time and reverses upwards however if you look closely you can actually see that the price is reacting to this new key level instead of the old one this is exactly why you should always keep an eye on new key levels that may form because price Doesn’t have to react to just one key level exclusively it can always react to new ones that forms along the way now moving on another type of ranging markets that you may encounter is called narrow ranging markets which is when the distance between the upper and lower levels are Too narrow as a result there isn’t much room for the price to move around this means that you won’t be able to trade it using the key level bound strategy that i showed you earlier and so the best way to take…

Choose The Best Forex Broker