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Range bound market.

 5. Price Action Trading - Range bound strategy.


  • If the market structure looks like range bound or side ways, we need to remember two things: 1. Resistance levels, 2. Support levels. 
  • As market price traded between the support level and resistance level, it doesn't mind the psychological levels ( round numbers ) and patterns as much.
  • We can expect a big move if the market breaks the range bound prices or else, it will be traded within the range.
  • We can buy the stock or options if the price is at support levels and we can sell the stock or option if the price is near to the resistance levels.
  • If the market opens gap up and near to resistance levels, then we need to wait until it makes a inside or rejection candle for the confirmation to short the stock or option. 
Ex: As the bank nifty is opened gap-up and nearby to resistance levels, so it may definitely come to fill the gap, after the first rejection candle as a confirmation, we can go short here. 




  • As we can see in the below image, bank nifty filled the gap and making lower lows formation till support or supply zone. 
  • In Range bound market, support and resistance level will act as magnet on both sides. We need to keep an eye on the middle line where market takes support or resistance to reach the upper level or lower level of the range. 



I hope the above information is helpful. 

Happy trading :)

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