Market Regimes
Range Mode
A market regime where price oscillates between support and resistance
Range mode (or ranging market) occurs when price moves sideways between defined support and resistance levels. Trend-following strategies fail in ranges, requiring a different approach focused on mean reversion.
✓How to Recognize
- •Price bouncing between clear support and resistance
- •No higher highs/higher lows or lower lows/lower highs
- •Regime indicator shows RANGE or NEUTRAL
- •Failed breakout attempts
⚡How to Avoid
- →Avoid trend-following setups in ranges
- →Trade support/resistance bounces instead
- →Wait for confirmed breakout before trending strategies
- →Reduce position sizes in choppy conditions