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Market Environment 市场环境: Page 3 of 6

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What is a Range-Bound Market?

A range-bound market is one in which price bounces in between a specific high price and low price. The high price acts as a major resistance level in which price can’t seem to break through.

Likewise, the low price acts as major support level in which price can’t seem to break as well. Market movement could be classified as horizontal or sideways.

Range-Bound Forex Market

ADX in a Ranging Market

One way to determine if the market is ranging is to use the same ADX that we discussed earlier. A market is said to be ranging when the ADX is below 25. Remember, as the value of the ADX diminishes, the weaker trend is.

ADX in Ranging Market

Bollinger Bands in a Ranging Market

In essence, Bollinger bands contract when there is less volatility in the market and expand when there is more volatility. Because of that, Bollinger bands provide a good tool for breakout strategies.

When the bands are thin and contracted, volatility is low and there should be little movement of price in one direction. However, when bands start to expand, volatility is increasing and more movement of price in one direction is likely.

Bollinger Bands in a Ranging Market

Generally, range trading environments will contain somewhat narrow bands compared to wide bands and form horizontally. In this case, we can see that the Bollinger bands are contracted, as price is just moving within a tight range.

The basic idea of a range-bound strategy is that a currency pair has a high and low price that it normally trades between.

By buying near the low price, the forex trader is hoping to take profit around the high price. By selling near the high price, the trader is hoping to take profit around the low price. Popular tools to use are channels such as the one shown above and Bollinger bands.

Using oscillators, like Stochastic or RSI, will help increase the odds of you finding a turning point in a range as they can identify potentially oversold and overbought conditions. Here’s an example using GBP/USD.

Stochastic in a Ranging Market

Bonus tip: The best pairs for trading range-bound strategies are currency crosses. By crosses, we mean those pairs that do not include the USD as one of the currencies in the pair.

One of the most well-known pair for trading ranges is the EUR/CHF. The similar growth rates shared by the European Union and Switzerland pretty much keep the exchange rate of the EUR/CHF stable.

Conclusion

Whether you’re trading a pair that’s in a trending or ranging environment, you should take comfort in knowing that you can profit whatever the case may be.

Find out how you can pick tops and bottoms in both trending and ranging market environments.

By knowing what a trending environment and a ranging environment are and what they look like, you’ll be able to employ a specific strategy for each.

As the old wise man in Central Park says, “Only a fool dips his cookies in habanero salsa!”

区间震荡市场

       价格在特定高点和低点之间来回波动的市场称为区间震荡市场。价格高点扮演着主要阻力位角色,价格一般难以突破阻力位压制。

       相类似的是,价格低点通常扮演起主要支撑位角色,汇价一般也难以跌破支撑位。市场环境能够分为水平整理或横盘整理。

ADX指标在区间震荡市场中的运用

       确定市场是否处于区间震荡中的方法之一是使用ADX指标,ADX指标我们在之前已经向大家介绍过了。当ADX指标维持在25以下时,市场通常处于区间震荡中。记住,ADX读数越低,市场趋势越弱。

布林带在区间震荡市场中的运用

       从本质上来说,当市场波动性降低时,布林带呈收缩状态,而当波动性增强时,布林带呈扩张态势。有鉴于此,布林带为进行突破交易策略提供了良好的工具。

       当布林带范围较窄且呈收缩态势时,市场波动性较低,且汇价难以出现单边走势。不过,当布林带开口开始扩张,市场波动性增强时,汇价更有可能朝单边波动。

       一般来说,在区间交易环境下,布林带范围较窄,且可能形成水平走势。在这一情况下,我们可以看到布林带呈收缩状,因为汇价维持在窄幅区间内波动。

       进行区间交易的基本思想是,货币对通常维持在区间高点和低点之间来回波动。

       投资者可以在价格低点附近买进,并希望在价格触及区间高点附近时获利;他们也可以选择在价格高点附近卖出,并在价格触及区间低点附近时卖出。受到投资者欢迎的区间交易工具有通道以及布林带。

       利用震荡指标,比如随机指标或RSI指标将增强交易者在区间内找到显示价格走势出现转折的反转点的几率,因为震荡指标能够帮助鉴别价格的潜在超买或超卖状况。下图是英镑/美元的例子。

       特别建议:最适合进行区间交易的货币对是交叉货币对。在进行区间交易的交叉货币对中,最为我们熟知的是欧元/瑞郎。

结论

       不管你是在趋势环境还是区间震荡环境下进行交易,你应该明白的一点是,无论市场环境如何,你都能够获利。

       你要做的第一件事是找到市场的顶部和底部,不管是在趋势市场中还是在区间市场中。

       知晓了趋势市场以及区间市场到底是什么,以及他们到底是什么样子,你将能够为每一种市场环境下的交易策略选择对应的交易工具。