The candlestick trading bible

64
THE CANDLESTICK TRADING BIBLE 
But ranging markets tend to move horizontally between key support 
and resistance levels. 
Your understanding of the difference between the both markets will 
help you better use the right price action strategies in the right market 
conditions. 
Trading ranging markets is completely different from trading trending 
markets, because when the market is ranging, it creates equilibrium, 
buyers are equal to sellers, and there is no one in control. 
This will generally continue until the range structures broke out , and 
a trending condition start to organize.
The best buying and selling opportunities occur at key support and 
resistance levels. 
There are three ways to trade ranging markets, i’m not going to go into 
details, because what i want you to get here is the skill to look at your 
charts and decide whether the market is trending or ranging.
In the next chapters i will go into details and i will give the trading 
tactics and strategies that you will use to trade trending or ranging 
markets.
If you can’t differentiate between ranging markets and trending 
markets, you will not know how to use these price action strategies. 
The first way to trade ranging markets is by waiting for price to 
approach support or resistance level then you can buy at key support 
level and sell at key resistance level.
See the example below: 

---

65
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: 

---