Markets that remain rangebound can be quite frustrating when the time period of the range gets long in the tooth and erratic in its structure. Everyone waits for it to break out or down - but the path of most resistance for traders becomes the range itself. What complicates this dynamic even further is when the range expands or contracts over time. I find it helpful in these conditions to maintain an agnostic and opportunistic approach and hold my trading biases and postures looser than I typically would. It requires greater patience with your performance, than say a market trending with great upside momentum or a market correcting with great velocity. Both of those conditions have degrees of force that by comparison can be appraised and extrapolated with greater precision. For all of these reasons (and many more), trading smaller is warranted - especially when you find yourself in the middle of the range.
Don't Get Comfortable In Home On The Range
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