Trend vs Range: Pick the Right Strategy
Markets behave differently over time.
Knowing whether price is trending or ranging helps you choose the right strategy.
Trending Markets
Trending markets move consistently in one direction.
- Higher highs & higher lows (uptrend)
- Lower highs & lower lows (downtrend)
- Best suited for trend-following strategies
Ranging Markets
Ranging markets move sideways between support and resistance.
- No clear direction
- Repeated bounces between levels
- Best suited for range-based strategies
Pick the Right Tool
Using the wrong strategy in the wrong market leads to losses.
Identify the environment first, then trade accordingly.
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