What is a range-bound market?

A range-bound market is a condition in which the price is congested within a range on the price chart. The general price action is found between two specific levels, that is, the high of the range and the low of the range. Traders use the names Congestion Phase, Price Consolidation, and Flat Market to refer to a Range-Bound market.

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.

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 happens if a range-bound asset touches a set price range?

If the asset touches or exceeds the set price range during the subscription period, the user will receive less than their initial deposit amount. The most apparent risk in trading range-bound assets is ending up on the wrong side of the market.