At this time, purchasing EASY Bot items is not available to all members. Read more - how to get access to purchase

Daily Range Trading

Understanding Daily Range Trading

  • Daily Range Trading focuses on defining a trading range based on the daily price movement, typically calculated during specific hours—often after significant market openings, like the European session.
  • Traders establish a range by identifying the highest high and lowest low within set hours, for example, 00:00 to 12:00 GMT for the EUR/USD pair.✨
  • Once the range is determined, a strategy is employed to enter trades if the price breaks above or below these boundaries, anticipating price continuation in that direction.

    • Trade Execution Process

  • After the range is defined, the Expert Advisor (EA) places pending orders just outside the range—buys above the high and sells below the low.
  • When a breakout occurs, trades are executed based on the direction of the breakout, using risk management techniques such as stop-loss and take-profit settings.
  • Closing trades can occur at the end of the day, ensuring positions do not carry overnight risk.💼

    • Managing Trades and Risk

  • Effective risk management is vital; this includes setting stop-loss levels based on a percentage of the recorded range to mitigate potential losses.
  • Traders often employ trailing stops to lock in profits as the trade moves in their favor, maintaining flexibility throughout the trading session.
  • Some EAs provide adjustable parameters to fine-tune trading strategies based on historical data and personal preferences, enhancing trade performance.

    • Daily Range Trading Example

  • For instance, if the daily range is identified between 1.1000 (low) and 1.1050 (high) for EUR/USD:
  • Buy orders may be placed above 1.1050, targeting bullish continuation.
  • Sell orders are positioned below 1.1000, allowing for bearish expectations.
  • In this scenario, effective use of the Average Daily Range (ADR) indicator can provide insights into how much price is expected to move, reinforcing entry points.📊

    • Tools and Indicators for Daily Range Trading

  • Tools like the Blahtech Daily Range indicator help visualize the average daily range, alerting traders when price has reached a critical level.
  • Other automated systems, like the Range Breakout Pro EA, can assist traders by executing trades without emotional interference, based on predefined range parameters.
  • Understanding the daily average behavior of currency pairs can greatly improve decision-making during trades.

    • Ah, the Netsrac ADR Dashboard MT5, where the fine line between genius and absurdity blurs! This 'magic' tool claims to weave its spell by showing average ranges and potential reversal points at a reasonable price of $59. Are you ready to find out if it lives up to the hype or if ...

    Release Date: 27/07/2020

    Welcome to the world of forex trading, where indicators can either be your trusty sidekick or your worse enemy! Today, we delve into the wonders and potential pitfalls of the ADR Alert Dashboard - a tool that supposedly helps traders jump into the action before they even know wha ...

    Release Date: 24/02/2021

    Log in
    Sign in

    Lost your password? Please enter your username or email address. You will receive a link to create a new password via email.