Definition – What does Ranging Market mean?
Ranging market is a slang term for a market that keeps moving back and forth between higher highs and higher lows. The choppy price action keeps establishing wider support and resistance levels, making it hard to properly identify a breakout. A ranging market is the opposite of a trending market that maintains a consistent direction.
ForexTerms explains Ranging Market
Ranging markets can be frustrating if traders are trying to use trend trading tools. There are distinct strategies, known as channel trading strategies, that forex traders have created for ranging markets. These strategies are similar to scalping, where a trader targets fewer pips on a larger number of trades.