Range in Up/Down Trend
Range-bound trading is a trading strategy that seeks to identify and capitalize on coins trading in price channels. After finding major support and resistance levels and connecting them with horizontal trendlines (zones), traders can buy cryptocurrencies when the price approaches support and sell when it reaches resistance. Technical indicators, such as the relative strength index (RSI), stochastic oscillator, and the commodity channel index (CCI), can be used to confirm overbought and oversold conditions when price oscillates within a trading range.
For example, a trader could enter a long position when the price of a coin is trading at support, and the RSI gives an oversold reading below 30.
Also, check out our blog on this topic: Stuck in a range? Perfect, just swing it.
Screen definition (bullish):
- SMA 10 Trend is between -10% and +10%
- Long Term Trend is Up
- Volume ($) is above 100,000
- RSI 9 is below 50
- CCI 20 is below -100 (minus 100)