Plus500 does not provide CFD services to residents of the United States. Visit our U.S. website at us.plus500.com.

Trading Academy
Learn the essentials of our platform and sharpen your trading skills with our ‘how-to’ videos and other educational materials.

Making the Most of Trading a Range

In this video, Roger Hawes, an Analyst from the Corellian Academy, focuses on range trading.

Range-trading, though not conceptually difficult, is a strategy that requires careful consideration of specific conditions and adhering to certain guidelines. It provides traders with the opportunity to navigate market fluctuations by providing the opportunity to generate profits in low volatility environments. In addition, this strategy's confidence-building aspect is underscored by the closely defined stop losses, allowing for the allocation of more capital and leverage.

As part of this trading style, traders should keep an eye out for market changes and possible breakouts resulting from new data or price action. As ranges persist in low volatility scenarios, substantial opportunities exist.

Furthermore, trading in a range involves capturing price action between levels of support and resistance, particularly in sideways markets.

To illustrate this strategy’s potential success and potential challenges, Hawes uses an Oil (CL) CFD price chart to illustrate.

However, it may be worth noting that chartists may have to spend time identifying a developing range, since they need to search for at least three touchpoints on both sides.

In conclusion, the narrative presented range trading as a nuanced but valuable addition to a trading portfolio, particularly in low volatility environments. It stressed the importance of patience, discipline, and adaptability in executing successful range trading strategies. In addition, a practical application of these principles was provided, demonstrating how these principles could be applied to profitable outcomes.

These webinars are provided by Corellian Academy and are subject to its privacy policy. The information is general in nature and does not consider your objectives, financial situation or needs and should seek professional advice before acting on it. No representation or warranty is given by Plus500 as to the accuracy or completeness of this information. Past performance is not a reliable indicator of future performance.

Put Your Knowledge to the Test

Ready to take the next step in your journey?

Why Plus500?

Protected & secure

Your data is safe and your funds are kept in segregated bank accounts, in accordance with regulatory requirements.

Professional support

Get around-the-clock dedicated customer service in multiple languages.

Regulated

Plus500CY Ltd is authorised and regulated by the Cyprus Securities and Exchange Commission (Licence No. 250/14).

Reliable

Plus500 Ltd is a FTSE 250 company listed on the London Stock Exchange’s Main Market for Listed Companies.
Need Help?
24/7 Support