Why Range-Bound Markets Are Attractive For Traders

in #investmentlast year

Still, the takeaway is that range- bound requests are the most important terrain for trading, If you are a dealer. In this composition, I will explain why I suppose this is true and show you how to take advantage of it.

Range- bound requests are characterized by high volatility, low volume and restrained trade exertion. The reason for this is simple dealers are hysterical to buy or vend because they do not see any clear direction in which prices might move.

This makes range- bound requests seductive for dealers because you can principally control the request. If you are long on a stock or short on an ETF, your only ideal is to be long when prices are trending up and short when they are trending down. This means that you can induce gains without having to find out what is going on in the underpinning company or request itself.