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.