Range trading: how do you define the box?
Ranges look obvious in hindsight and blurry in real time. The trader's job is defining the box precisely enough to trade: the boundaries, the touches that count, and the conditions that say the range is over.
Share your definition:
- how many touches a boundary needs before you trust it
- whether you trade both sides or one
- what tells you the range has broken for real
The support and resistance guide covers boundary construction, and ATR helps size for the box.
Background: Support and resistance: how traders mark price levels
Support and resistance are the most widely used ideas in chart reading. How to find levels, why they work as zones, and what happens when they break.
What is support and resistance in forex?
Support is a price area where falling prices have tended to stop, and resistance is an area where rising prices have tended to stall, often because many orders cluster there.
What happens when support breaks?
The price often falls further, and the old support level frequently acts as resistance if the price comes back up to it.
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