Jesse Rogers explains how to trade range-bound markets: identify the high and low, wait for a decisive break called a fair value gap, then enter with a limit order on the gap. Set your stop beyond the first candle and target twice that distance. Don't trade inside the range.
Is the market going up or down? I'll give you three seconds to decide. One. Two. Three. Wrong answer. It's neither. The market is actually going nowhere. And every trade inside this range is a gamble that will most likely blow your account. So here's what you do instead. You don't guess. You just wait. Identify the range, mark the high and the low, and sit out until one breaks with real force. Not just a wick, not just a candle. Close. What you're looking for is displacement in the form of a fair value gap. And once you see the gap through the range, that is when you trade, set a limit order on the gap. Stop goes beyond the first candle and your target is twice the distance to your stop. Now, you're not gambling inside the range. You're waiting for the market to show you who's in control. And you're trading in the right direction. Now, save this and watch it again and again until you get it.
