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After a long move, price often consolidates and stucks in a range.
A range is denoted by a seller's area and a buyer's area.
Price action could be fast near these areas but slow in between. There are many twists and traps inside this range and hence higher chances of losing money.
The idea here should be to either trade reversals near support and resistance areas or wait..till the range actually breaks decisively (preferably in the direction of prior trend) and offers pullback opportunities.
A range is denoted by a seller's area and a buyer's area.
Price action could be fast near these areas but slow in between. There are many twists and traps inside this range and hence higher chances of losing money.
The idea here should be to either trade reversals near support and resistance areas or wait..till the range actually breaks decisively (preferably in the direction of prior trend) and offers pullback opportunities.
