GET IN THE RING
Range trading is like prize fighting. In the green corner, you have the Bulls. In the red corner, you have the Bears. Both of the fighters are equally matched, however, the current champion (the prevailing trend) has the best odds of winning, but all champs retire at some point.
FIGURE 13.1 Breakout Cycle
Source: FX Bootcamp, LLC (www.fxbootcamp.com)
DealBook® 360 screen capture printed by permission. © 2008 by Global Forex Trading, Ada MI USA
Range trading is a slugfest. Both fighters stand toe to toe, exchanging blows back and forth. It’s going to be a long and bloody fight to the end. It’s not going to be easy for either fighter.
In the case of forex range trading, you are betting on both traders. You are not necessarily concerned with who wins. Your wagers are on who will win each individual round. Each round is another opportunity to put money on the table.
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