Understanding a range and how to trade it is essential to be a profitable trader.
While many traders will avoid a range altogether, some of the best trades can be found when you understand how to trade a range.
In this post, we go through precisely what range trading is and how you can use it in your trading with MT4 and MT5 indicators.
What is a Ranging Market
A ranging market is a market where there is no clear trend in place.
The most common range is where you have a clear support and resistance level that the price has between trading within. It is known as a range because these clear support and resistance areas are the range that the price is caught.
A lot of traders will look to trade a range in two ways. The first is using the support and resistance levels to make reversal trades. For example, as the price moves into the range’s resistance, they will look for the range to hold and make short trades.
The other way a range is often played is by looking for the range to break. When trading a range this way, you are looking for when either the support or resistance of the range breaks and you can make breakout trades.
The example chart below shows a range in play. We have support and resistance levels for the range, and we can look to make reversal trades from these levels.
Ranging Market Indicator MT4
One of the easiest ways to find and trade a range is with a range indicator on your MT4 or MT5 charts.
This range market indicator is a free indicator that you can use in your Metatrader charts.
While this is a free indicator, it is very handy and has many benefits.
This indicator will quickly help you identify when the price is ranging and the support and resistance of the range.
You can use this indicator in any market you like and with all of your time frames.
Get your ranging indicator for MT4 here.
Sideways Market Indicator MT4
A range is also known as a sideways market. This is because when the price is ranging, it is moving sideways and not in a clear trend, higher or lower.
A sideways market indicator is similar to a range indicator, and it can help you identify when a trend has stopped, and the price is moving sideways.
This is a premium indicator that you can try with a free demo.
Once you have downloaded and started trading with this indicator, you will see important box areas of support and resistance.
You also have the ability to use it in all time frames and markets you like.
A nice feature of this sideways market indicator is that you can use it for swing trading or scalping the markets.
Get your sideways indicator for MT4 here.
Ranging Market Indicator MT5
This is an incredibly handy MT5 ranging market indicator.
While this indicator is not free, it does have a free demo you can test and comes with a lot of features.
Once you have downloaded and started using this MT5 range indicator, you will be given clear markings on your charts of the range area.
You have the option to set up alerts, and you can also use it in any time frame or market you like.
Get your ranging indicator for MT5 here.
Sideways Market Indicator MT5
As mentioned above, a ranging market is also known as a sideways market.
This is a free MT5 sideways market indicator, and you can use it to see when the price is in a trend, the trend is slowing or when the price is trading sideways.
This is a bit different from the other indicators in that it doesn’t add boxes to your chart but adds a histogram. This shows you if the price is picking up speed or moving sideways.
While this is not as advanced as the other indicators discussed, it is still a very handing sideways market indicator for MT5.
Get your sideways indicator for MT5 here.
As with any new indicator or trading strategy, it is essential you first test them on free demo charts with virtual money until you are comfortable with them.
Some of the best indicators are not the indicators that give you trading signals but the ones that save you time.
With these range and sideways market indicators, you can quickly and easily see when the price is ranging and the support and resistance levels you can use.