The thing about range trading - is that you need to take expected yield into account. You can only realistically catch 50% of a trading range - i.e. the top - bottom divided by two. So if you have a 200pt range, and you are using 50pt stops, then you might have a tradable situation - expecting to catch 100pts. If you are expecting to short - just try this exercise. Plot a zig-zag line on any timeframe. Look to see in which direction you have the longest lines. I promise you that if you have higher highs and higher lows - then the longest lines will be up. Conclusion, you might be able to short the down lines - but your yield will be significantly less than waiting for hte next up line
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