Who is said to be a range trader?

<p id="isPasted">A range trader is an individual who employs a trading strategy known as range trading or trading within a range. Range traders aim to identify and capitalize on price movements within a specific price range or channel.</p><p>Range traders typically look for areas on price charts where the price repeatedly bounces between support and resistance levels, forming a clearly defined trading range. They aim to buy at the lower end of the range (support) and sell at the upper end (resistance), profiting from price fluctuations within the established range.</p><p>Range trading is often applied in markets or securities that lack a clear trend and exhibit sideways or consolidating price action. Range traders rely on technical analysis tools, such as support and resistance levels, trendlines, and oscillators, to identify and confirm the range-bound conditions.</p><p>Range trading can be suited to traders who prefer a more systematic and disciplined approach, as it involves establishing clear entry and exit points based on the range boundaries. It requires closely monitoring price movements and adjusting positions as the range evolves.</p>

<p id="isPasted">Range trading strategies are popular because markets only trend – moving in a single, strong direction – a fraction of the time. Most activity is found in a range, so it’s an essential skill to be able to find opportunities in any sideways price action.</p><p>Range trading is used most by those who subscribe to short-term styles of trading, such as scalping and day trading. That’s because it’s focused on taking quick positions in the movement between two levels, rather than a long-term trend.</p><p>It’s also a common strategy for forex traders, who look to take advantage of the small and fast price changes in exchange rates.</p>

<p id="isPasted">A range trader is a market participant who focuses on assets moving sideways within a defined "channel" rather than following a long-term trend. They operate under the assumption that prices will oscillate between established boundaries of supply and demand for a period of time.&nbsp;</p><p><strong>Core Philosophy</strong></p><ul><li>Mean Reversion: Range traders believe that after a price moves, it has a natural tendency to return to its historical average (the "mean").</li><li>Predictability over Momentum: Unlike trend followers who chase "breakouts," range traders bet on stability. They assume that support and resistance levels will hold. </li></ul><p><strong>Defining Characteristics</strong></p><ul><li>Entry/Exit Strategy: They typically buy near support (the lower boundary) and sell near resistance (the upper boundary).</li><li>Indicators Used: They rely on oscillators that identify "overbought" or "oversold" conditions, such as the Relative Strength Index (RSI), Stochastic Oscillators, or Bollinger Bands.</li><li>Risk Profile: Range traders often use tight stop-losses placed just outside the range boundaries to protect against a sudden breakout. </li></ul><p><strong>Famous Examples</strong></p><p>While many legendary traders are famous for catching massive trends, some historical figures were known for mastering price boundaries:&nbsp;</p><ul><li>Nicholas Darvas: Developed the "Darvas Box" theory, where he identified stocks trading in narrow ranges and specifically looked for the moment they broke out of those ranges.</li><li>Jesse Livermore: Though a trend trader, he pioneered the use of pivot points—key levels where he watched for a stock's reaction to determine if a range would hold or a new trend would begin. </li></ul><p><strong>When Range Trading Works Best</strong></p><ul><li>Consolidation Phases: Markets are said to be in a range approximately 70% of the time.</li><li>Low Volatility: It is most effective when there are no major news catalysts or economic shifts to drive price in a single direction.</li><li>Low ADX Reading: Traders use the Average Directional Index (ADX) to confirm a range; a reading below 20-25 usually signals a sideways market. </li></ul>