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I’ve noticed that a lot of people want to learn Range Trading but don’t know where to start. This strategy is much simpler than it seems, especially if you understand the concept of support and resistance well.
Basically, what you need to do is identify a price range where the coin is oscillating. I’ll be direct: you buy when the price is approaching support and you sell when it gets close to resistance. That’s it. The main advantage is that the price tends to stay within this price range for a while, hopping back and forth from one side to the other.
Candlestick charts are your best tool here. These charts have been used for centuries in stocks and forex, and they work just as well with crypto. They clearly show where support and resistance are, which are nothing more than two price levels that define the coin’s volatility within a range.
Now, what’s the risk? Simple: the price can break one of these levels. When that happens, the coin leaves the established price range and follows a new direction. But honestly, this doesn’t happen that often, which makes this strategy quite safe for beginners.
What I notice is that most traders follow these price targets, so trading becomes even more predictable. There’s one important thing: sometimes crypto jumps multiple times between support and resistance before it really decides where it’s going. You need to be prepared for that.
Taking BTC, DOGE, or SOL as examples, you’d see situations like: buy at support (certo), sell when it reaches resistance (certo), buy again when it returns to support (certo). But if the price breaks support and doesn’t come back, then you need to recognize that the range has changed and adjust your strategy.
The success of this approach really depends on how predictable the crypto is and how many times it oscillates within your defined price range. Not all coins behave the same, so you need to study the specific pattern of each asset before putting real money in.