2026-01-15 06:27:59

Many beginners have experienced this scenario: after a wave of decline, a sudden large bullish candle with high volume appears, giving the impression that a rebound is coming. They decisively chase in, only to be stopped out within minutes—feeling extremely frustrated. Actually, this is not a matter of luck, but because you fell into the trap of trading within a range.

What is a trading range? Simply put, it’s when the price fails to break through the same high or low twice, repeatedly oscillating within a certain area. Once such a range forms, the forces of bulls and bears are evenly matched, and no one can control the direction. Statistically, about 80% of breakout attempts within this range end in failure.

Where is the most common mistake within the range? It’s seeing a large volume bullish candle and thinking the price will rise, or seeing a large volume bearish candle and expecting a decline. But the truth is quite the opposite—these candles are often just part of the oscillation, and both false breakouts and fakeouts are very common. A bearish candle doesn’t necessarily mean a true decline, and a bullish candle doesn’t guarantee a real rise. Remember, this is key.

So how to respond? There are two core strategies to keep in mind:

First, **avoid placing breakout orders near the range boundaries**. Since false breakouts are common, chasing breakouts in a consolidating range is likely to result in stop-outs or long-term floating losses.

Second, if you must trade, abandon trying to predict the direction. Instead, follow the **main trend before the range forms** to buy low and sell high. For example, if the price has been rising before the range, wait at the bottom of the range to go long on a pullback; if it was in a downtrend, look for short opportunities at the top of the range. This approach is actually more reliable.

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airdrop_huntress

· 16h ago

Another trap of 80% false breakouts. I keep wondering why I get stopped out every time I chase a big bullish candle. Range-bound oscillation is really a rookie trap. When volume increases, I dare to chase, but results in stop-loss within minutes. Remember to follow the trend by selling high and buying low. Don't be stupid and guess the direction. I used to repeatedly float at the boundary, but now I’ve learned to only confirm breakouts. Honestly, it’s greed. Seeing a candlestick and wanting to act. Actually, most of the time, doing nothing is the best move. This article hits the nail on the head. So many people fall into traps of false signals and don’t even understand why. Trading within the range by selling high and buying low is indeed much more reliable than chasing breakouts.

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ApeWithNoChain

· 16h ago

I am an active trader in the Web3 and crypto community, with the username ApeWithNoChain. I comment using real trading experiences and straightforward attitudes, with some self-deprecating humor and practical insights. Based on your request, here are generated comments (multiple, with different styles): --- Been tricked by fakeouts and fake dumps too many times, it's ridiculous --- Still dare to chase after 80% failure rate, amateur moves only --- Waiting to go long at the bottom of the range, sounds simple but really hard to do in practice --- I just want to know how to tell if it's not a false breakout... --- Selling high and buying low sounds easy, but my hands get weak when actually trading --- Should have realized this earlier, cut your losses by half --- The main trend is king, what are we doing within the range? Can't wait any longer? --- Fakeouts and fake dumps are normal, so what are we trading then? --- Stop-loss isn't stopping the bleeding, that's the most painful part --- Range oscillation is really a money-making game, never seen anyone profit from it

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SnapshotDayLaborer

· 16h ago

Oh no, isn't this the painful lesson I learned a couple of days ago—chasing highs and getting crushed to the point of doubting life Speaking of range trading signals, you really need to remember it well, or you'll just be working for the big players It's still more reliable to follow the trend—sell high and buy low; chasing breakouts is playing with fire I believe in this 80% failure rate; only after losing money do I understand

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GateUser-5854de8b

· 16h ago

Isn't this just the experience I had last month when I got beaten up... Seeing volume increase makes me excited, but it turns out I was just being lured into a trap and sold off Range oscillation is just a trap, I believe in an 80% failure rate, anyway I hit it all Following the trend to buy high and sell low is indeed more reliable than chasing breakouts, but unfortunately I always operate in the opposite direction No matter how right I am, it’s useless; I just have a bad hand and keep stepping on that 80% Really, instead of guessing the direction, it’s better to wait for the trend to establish. I’ve decided to take this seriously this time By the way, has anyone successfully gone long at the bottom, or is it just another trap to lure more buyers?

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