📦 Candle Range

Markets trend far less often than people think — much of the time price just oscillates between a floor (support) and a ceiling (resistance). Range trading accepts that and works the box: buy near the floor, sell near the ceiling, repeat until the box breaks.

The two failure modes are trading a 'range' that's actually a trend, and staying in the trade when the box finally breaks. This strategy addresses both: it demands proof the range is real before trading it, and a candle confirmation before every entry.

How the strategy works

1. On 15-minute bars, mark the recent range high (resistance) and range low (support).
2. Confirm it's a real range: price must have touched both edges several times — one bounce isn't a range.
3. Near the lower edge with a bullish confirmation candle → go long. Near the upper edge with a bearish candle → go short.
4. Target the opposite edge of the box; the stop sits just beyond the edge you entered at.
5. If price breaks out of the box, the scanner stands aside — no trading a range that no longer exists.

When it shines — and when it doesn't

Range trading is the specialist for sideways, directionless markets — the conditions that starve every trend strategy. Its enemy is the breakout: a range pays you in small, frequent wins, and then the box breaks and takes a chunk back. The edge-confirmation and breakout-detection rules exist to keep that chunk small.

Key terms

Support / resistance

The floor and ceiling prices where buying/selling has repeatedly stepped in.

Confirmation candle

A candle closing in your direction at the edge — evidence the bounce is starting, not hoped for.

Breakout

Price escaping the box — the signal to stop range-trading it.

How to judge it

Expect a high win rate with modest wins — and judge it with profit factor and max drawdown alongside, because the losses arrive clustered when ranges break. If the backtest shows a great win rate but a profit factor near 1, the breakouts are eating the bounces.