The most reliable way not to get slapped around in a range-bound market
Alright, since it’s risen, it’s a buy! At the moment you enter, it suddenly plunges. Then switch to selling when you chased, and this time it recovers in a V shape.
The terrifying “back-and-forth slap” where you keep losing funds as you repeatedly go against the market trend.
A typical pattern where traders trapped in a range market have their courage crushed in a short time.
“How can I distinguish the range and avoid this back-and-forth slap?”
To state the conclusion first. The most reliable method is to stop trading “in the middle of the range” right now.
If you put it into words, it sounds obvious, but once you understand this, weird losses should dramatically decrease.
This time, why you end up getting the back-and-forth slap,
the structural causes and the safest way to protect yourself.
First, please look at the “three key points” to avoid the back-and-forth slap.