By trading in a range of variance, traders rely on the fact that prices will be traded between the same horizontal levels for a certain period of time, retreating several times from levels of support and resistance. It is assumed that, regardless of where the exchange rate is, it will return to the central reading. The trader’s goal is to benefit from price fluctuations around this central brand.
Important Tips for Trading with Gaps
- Be more careful about leverage.
- Mini and micro batches allow you to place larger stops.
- Do not use scaling in and scaling out.
- The risk / reward ratio is 1: 1.
- Stop Loss is slowly moved to break even.