Markets Stuck in Multi-Year Ranges; Reversal Indicators Key for Trading Range Breakouts
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Equity markets have been range-bound, unable to break out of multi-year highs and lows (e.g. S&P 500 stuck between 3500 to 4800 for 3 years).
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With uncertain rate paths, assets like indices, gold, etc have been range trading.
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Identifying when a reversal occurs within a range is key to trading ranges. Use indicators like RSI, candlesticks, momentum, Bollinger Bands.
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A robust approach combines multiple reversal indicators to add reliability to trades.
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Monitor ranges and look for reversals, especially when nearing edge of range. False breakouts possible before real reversal.