Trading the Edges

A term you'll hear me use occasionally is "trading the edges".

What I'm referring to here is:

  • In a sideways market with no particular bias either direction, taking trades only in the vicinity of the outer edges of the trading range; in particular when it traps a "breakout" trader. Trades may be taken long from the vicinity of the lower range support or short from the upper range resistance.

  • In a sideways market with a slight directional bias, taking trades only in the vicinity of the range edge that is against the bias. This may be either a long in the vicinity of lower range support, if the market has a bullish bias. Or a short in the vicinity of the upper range resistance when the market has a bearish bias. Again my preference is to be patient and wait for someone to be trapped against the bias.

Here's an example:

trading the edges - trading timeframes

trading the edges - lower timeframes

Another example:

trading the edges - trading timeframes

trading the edges - lower timeframes

Happy trading,

Lance Beggs


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YourTradingCoach - Admin

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