The Range Trading
The Fibonacci and Range Trading strategy with Fibonacci tools is not always easy and clear. Every step is not a strong step for a clear A to B, and correction of C and then point D on the extension. Sometimes, improvements on C may last for long. Attempts to break on extensions may fail. The Fibonacci and Range Trading strategy on the chart below, you can see that the improvement ended at 38.2% retracement level, but the value failed to reach the next higher.
You can see that, from that moment, the price went past the boundary between the previous high and 38.2% line. After all, it broke, but for a long time, it was not going in any particular direction.
This is something that you can see on many occasions. Price range will often be between high / low and Fibonacci retracement levels.
The trick will not always continue in the main direction. A boundary means that there is no win at this time. The bulls and the bears are struggling, after all, one side wins.
In the example below, the main trend is up, then there is a correction, but bulls fail to move to the next higher. For a while, there is a range move, but, finally, the bear took control and the price fell.
There was no clear direction at the time and investors were confused. So it is good to know that, on many occasions, the range is between Fibonacci levels. The best thing about it is that you can do trade.
To do this, you can get some help with oscillators, such as Stochastic, RSI or ADX. The idea here is simple – you buy on support and sell it on resistance. It sounds simple, but it is quite hard at the beginning. This trend is very different from trading, but still, you can make money in a range. As you can see above-these skills are sometimes useful.