A range-bound trading strategy
A range-bound trading strategy refers to a method in which traders buy at the support trendline and sell at the resistance trendline level for a given stock or option.
Traders place stop-loss points just above the upper and lower trendlines to avoid having heavy losses from high-volume breakouts.
Typically, traders use range-bound trading in conjunction with other indicators, such as volume, in order to increase their odds of success.
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