Traders who seek for a range don’t concern themselves with the market’s directions. They simply look to open a position as the currency’s trend reverses and the price retraces to the original point.

As a trader, your first step should be to find a currency that’s trading within a channel. You will then be able to sell when the price reaches the top of the range or you can buy the monetary unit when the price is at the bottom.

This will of course require that you implement proper money management to prevent from running into financial problems.

So let’s say you’re interested in profitable duos like the GBP/USD pair. If it’s trading at $1.6199 you could enter into a short position if the pair increases 50 pips and buy it again when it drops 25 points. In this scenario, a range trader believes that the currency pair will eventually come back to the $1.6199 level.

Note that in order to trade ranges you’ll need a nice size Forex trading account. Keep in mind that making use of leverage can cost you significant losses. By keeping substantial account equity, you won’t risk the chance of getting a margin call prior to the reversal.

Fortunately, if you don’t have deep pockets, you may opt for a mini account; you can still earn a profit with mini lots valued at $10,000 each. And best of all, in the foreign exchange, you don’t have to pay a commission, just a minimal spread.