What is range trading? There are people who will say that range trading is easy; you just have to go short at the top and long at the bottom of the range. But things aren't as straightforward as this. The trouble is that in the real world you will get 1 or 2 spikes that go thru. So we have to use something like Stochastics or divergence as a signal. I want to find trades which look good and have a good risk/reward yet still limit my risk. One thing we can do is to wait for price to probe thru and then revert back.

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