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THE CANDLESTICK TRADING BIBLE
As you can see, the market is moving horizontally, in this case the best
buying opportunities occur at the support level.
And the best selling opportunities occur at the resistance level.
The second way of trading ranging markets
is by waiting for the
breakout from either the support level or the resistance level.
When the market is ranging, no one knows what is going to happen,
we don’t know who is going to be in control of the market, this is why
you have to pay
attention to the boundaries, but when one of the
players decide to take control of the market, we
will see a breakout of
the support or the resistance level.
The breakout means that the ranging period is over, and the beginning
of a new trend will take place...
See the example below: