3. Ranging Markets

A trending market is easy. There is directionality and price is moving, either up or down. In an up trend, we are making higher highs and higher lows. In a down trend, we are making lower highs and lower lows. This is easy and I think that everyone that is watching this course already knows this.

In a ranging market, there is no directionality. Price is dropped in a range. We have a support area that is unbroken and a resistance area that is unbroken and price is simply bouncing off these two levels, creating what we call a range.

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