Price action on the daily chart of the EURUSD is stuck in a sideways range movement that it is having a super hard time moving out of. As the daily chart shows below; price is currently moving in between a very narrow range because the overhead resistance and near term support below are both so close to the current price.
If you just sit back and look at the daily price action on this chart from left to right you can see that it really is in a bit of an overall mess in the short-term. Price over the last few months has not had a clear trend in either direction and there has not been a strong pulse or momentum either way.
Price has just been drifting and ranging higher and lower and that makes price extremely difficult to trade and make money. Finding trades in ranging markets is not so hard > it is the managing them safely, and then getting out of the market alive with your capital that is the tricky part.
The reason ranging markets are so tricky is because like I discuss in this lesson here; How to Make High Probability Price Action Trades in Ranging Markets, to make money trading we need price to make a move in the same direction for an extended period of time and when price is ranging it is not doing that, it is bopping up and down and all over the place.
That is why in a ranging market you can pick the correct direction, but still be whipsawed out of the trade and lose money. Price can hit your stop loss, take you out and then go in the correct direction making you a loser even though you picked the correct direction and this is what I mean when I say; if price does not move in the same direction for any period of time, then it makes it extremely difficult to make money.
This is why trading with the trend REALLY is your friend and why you want to pick and choose the trades you make in ranges very wisely indeed. You still need to know how to trade in a range, that is for sure, you just need to pick and choose when you do it!
Daily Chart – Stuck Trading Sideways
1 Hour Chart – High Probability False Break Pin Bar
Leave a Reply