Why Traders Get Destroyed Inside Ranges

10 Oct 2026 · 1 min

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In this instructional segment, the presenter delivers a concise primer on range trading, emphasizing that traders should never execute positions in the middle of a price range, as this is where most losses occur. When a range is identified, the focus should shift to the range extremes—the low and the high. Using a Fibonacci retracement from the low to the high, the 50% level traditionally marks the boundary between premium (above) and discount (below) in normal market conditions. However, in range trading, true premium exists above the range high and true discount below the range low, a nuance many traders overlook, leading to frequent struggles with range markets.

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You guys know the deal when it comes to ranges, and if you don't, let me give you a little bit of Range Trading 101 alpha. When it comes to ranges, you never ever want to be executing in the middle of the range. That is where most people end up losing money. Why? Because when you are dealing, or every single time you manage to identify that, hey, you are currently in a range, I want you to immediately draw your eyes towards the extremes of the range, meaning the range low and above the range high. Because when you're dealing with a normal market condition, A premium discount is simply you draw a fib from the low, you draw a fib to the high, and above the 50% line, this is a premium, and below the 50% line, this is a discount. That is where the knowledge for most people in terms of premium discount starts and ends. But when it comes to range trading, the premium and the discount is not in the middle. The premium is above the range high and the discount is below the range low. This is something that a lot of people get wrong, and that's why so many people struggle with ranges.