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Trading the Range: Sell High, Buy Low

Price is bouncing back and forth inside a clear box. Sellers show up at the top and buyers at the bottom, so set limit orders at both ends in advance. Watch out for a breakout near the end.

Goal

Place a Sell Limit at the top of the range and a Buy Limit at the bottom, and profit from both sides.

  • Get at least one Sell Limit and one Buy Limit filled
  • Total profit for the session is positive
  • Maximum drawdown no more than 8%
Rules

Risk warning: forex, CFDs, options, futures and crypto assets usually involve leverage or high volatility, and you can lose more than you put in. This lesson only teaches the concepts; all numbers are for illustration and are not investment advice.

Trading the Range: Sell High, Buy Low · Trading practice · 72lab