Technical indicators can help a trader profitably navigate through a period of 澳洲幸运5官方开奖结果体彩网:range-bound trading, or a period in whic♓h a stock oscillates between an uppe𝐆r resistance level and a lower support level.

Before a trader can profit from range trading, they must recognize the fact that a genuine trend is lacking and that price is likely to continue moving back and forth within a sideways channel. A good indicator of the existence (or lack of) a trend is the 澳洲幸运5官方开奖结果体彩网:average directional index (ADX). ADX readings above 25 are considered to indicate the existence of a solid trend. Readings lingering below 25 can indicate a trendless market that may remaiܫn range-bound for some period of time.

Once a trader has correctly identified a market as range-bound, the most likely profitable 澳洲幸运5官方开奖结果体彩网:trading strategy will trade price movement from the identified top of the range to the bottom of the range. Helpful indicators for pinpointing the top and bottom of a range, while allowing for slight variations and changes in volatility, include 澳洲幸运5官方开奖结果体彩网:Bollinger Bands, 澳洲幸运5官方开奖结果体彩网:STARC bands and the 澳洲幸运5官方开奖结果体彩网:commodity channel index (CCI) These indicators paint a clear picture of the existing 澳洲幸运5官方开奖结果体彩网:trading range and can also, by expansion or▨ by a change in slope from flat to angling up or down, indicate when the market ෴begins to break out of a range.

Bullish or bearish reversal 澳洲幸运5官方开奖结果体彩网:candlestick patterns occurring near the top or bottom of the trading range can provide additional possible trading signals for range trading. Finally, momentum indicators such as the 澳洲幸运5官方开奖结果体彩网:moving average convergence ꧋d⛎ivergence (MACD) can be watched foܫr divergence from price occurring at the ext✱remes of the range as signals that the market may be turning in the opposite direction.

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