Free Forex Range Trading Systems

1 - I can do better 2 - Jury's out 3 - Pretty darn good 4 - Splendiferous 5 - Awesometastic by 1 person | Log in to rate

Ranked #4,052 in How-To, #40,657 overall

Free Forex Range Trading System

With some trading systems there are many types of trades that you can take. In learning a system it is important to separate the types of trades and practice them individually.

This is like eating an elephant. The thing is so big, you will never eat it all in one bite or even at one sitting. You need to divide it up in pieces.

And that is how you conquer learning a trading system, divide it up into trade types and practice them one trade at a time.

Here is an example of range trading system.

Free Forex Range Trading System - Anatomy of the Chart 

We'll look at the anatomy of a ranging channel first.



You can see that the higher lows from point A to B create a clean trend line. The spike at point C is all that is needed to start a channel. We would like to see TWO touches at the top of the channel - but one spike with a long wick (at "C") is enough to do the trick.

In this ascending channel, the top of the channel is an ideal profit target. Price will surprisingly often come up to hit the top of a channel like this, even if you only start it with 3 touch points for drawing the channel.

Those middle dotted lines in the channel are Fibonacci retracement values, of the width of the channel.

These Fibonacci retracements are the 38.2, 50, and 61.8 percent values of the width of the channel. We'll get to the use of Fibonacci in a minute.

Price tends to range and get stuck around these Fibonacci lines. Now, lets move on to the red line.

Learn very simple trading systems

Forex Range Trading Systems - Type 1 

I like to draw trend lines on moves that range from the top of the channel all the way to the bottom (or vice versa).

In an Ascending channel we have a preference to buy. In a Descending channel we have a preference to sell.

Go long above the high of the candle that closes above the red line. In this case, the stop can go below Stop goes below the lower boundary of the channel. If trading in the direction of the Channel (i.e. buying in an ascending channel, or selling in a descending channel), then you can profit the opposite extreme of the channel. So in this chart, we would have a limit of the top of the channel.

If you are trading against the direction of the channel, then it is often best to use the nearest Fibble as a profit target. This is to limit your exposure while trading against the near term trend.

This red line type of trade will often get you into a trade near to the boundary of a channel after a bounce. In this example however the breaking candle is huge so we will be trading long in the upper portion of the channel. That is still ok.



Learn very simple trading systems

Forex Range Trading Systems - Type 2 

In an Ascending channel, we can trade long on a candle close above the top Fibonacci level targeting the top of the channel.

In a Descending channel, we can trade short on a candle close below the lower Fibonacci, targeting the lower boundary of the channel.



Here we have a close below the Fibonacci. Set entry a few pips below the low of the candle. Stop goes above the top Fibonacci. Profit Target is the bottom of the channel.



That's why we like selling in a down trend. The profit target keeps moving further away as your position is collecting more pips.

Learn very simple trading systems

Watch Video Example of Another Siple Trading System 

Please Live Your Feedback 

Like this lens? Want to share your feedback, or just give a thumbs up? Be the first to submit a blurb!

Read More about Trading Systems 

featured lens 10 Minute Forex Wealth Builder Review

One more FOREX trading system has been released recently. Many people who trade FOREX and tried this system are giving reviews of it. Being a part-time Forex trader myself, I know that most so-called "Forex gurus" with their numerous Forex trading sy...

featured lens Evaluating Forex Trading Systems

I know how it can be frustrating to not being able to make consistent profit in Forex trading. I've been there. It seems I have tried all the strategies, signal provider, trading software, you name it. What I actually discovered was simply amazing....

featured lens Forex Swing Trading

Many people who get involved in trading, especially online currency trading believe that their success as a trader entirely depends on picking a good trading strategy. While it's not entirely wrong I believe it is not the strategy that makes one a su...

featured lens Free Forex Range Trading Systems

With some trading systems there are many types of trades that you can take. In learning a system it is important to separate the types of trades and practice them individually. This is like eating an elephant. The thing is so big, you will never eat...

Forex Opportunity 

Loading Fetching RSS feed... please stand by

by alberts

I was continuously failing if Forex until I discovered a simple trading system. It's a very simple system that accurately identifies the trading oppor... (more)

Related Topics

Favorited By

Create a Lens!