Trading in Trading Ranges: 1/2R -> 1R

Introduction

  • This is not a full system—just a look at a key behaviour that shows up often in trading ranges.
  • I think it will help no to get frustrated and get back IN SYNC with what institutions are doing.

Main Idea

  • In trading ranges, traders don’t expect swing trades. You’re unlikely to get a clean 2R move. 2R is often a surprise exit.
  • Instead, the chart shows 0.5R to 1R targets are more common.
  • That means you are always getting LESS than what you risk. So it is a dangerous place to be trading large.
  • But by trading small, expecting sideways, scaling in and taking quick profits, you can rack up a days worth of points even when the range is small. And not get so frustrated doing it.

Chart Example 1

https://www.tradingview.com/x/MEOF3Rjg/https://www.tradingview.com/x/MEOF3Rjg/

Chart Example 2

https://www.tradingview.com/x/GoeMFOu4/https://www.tradingview.com/x/GoeMFOu4/

Chart Example 3

https://www.tradingview.com/x/WAif4Luq/https://www.tradingview.com/x/WAif4Luq/

Summary

  • Swing traders aim for 2R, but that’s rare in a tight trading range
  • 0.5R–1R trades show up more often
  • Adjust your stop, scale in, and trade smaller
  • Range days feel confusing only if you’re expecting trend behaviour.
  • This is a small part of reading price action—if it interests you, go study it further.
  • Our job is not to predict, it’s to adapt.

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I’m Tim

Welcome to Zen Trading Tech.

I’m a Aussie day trader and I post trading tips, practice drills, and indicators that helped my trading get to a professional level.

Everything here is to help train the eyes and hands to trade better. If it helped me I’ll post it for others. Hope you enjoy!