What is a range-bound market?

A range-bound market is one in which price bounces between a specific high price and a low price. The high price acts as a major resistance level in which price can’t seem to break through. Likewise, the low price acts as a major support level in which price can’t seem to break as well.

What is range-bound crypto trading?

While it originates from traditional markets like the stock exchange and Forex, range-bound trading is also popular among crypto traders. Crypto traders take advantage of sideways markets by identifying the major support (low price) and resistance (high price) levels.

What is a range-bound trader?

By finding major support and resistance levels with technical analysis, a range-bound trader buys stocks at the lower level of support (bottom of the channel) and sells them near resistance (top of the channel). Check out the two charts below, the S&P 500 and the Nasdaq, clearly outlining the range-bound market areas of late!

What are range-bound strategies for a sideways market?

Types of Range-Bound Strategies for a Sideways Market Range-bound strategies refer to methods by which traders capitalize on a market that’s moving sideways — also known as a sideways market. For example, users trading in sideways conditions will repeatedly buy an asset low at the support level, and then sell it high at the resistance level.