Range trading is a strategy where traders buy at support and sell at resistance within a defined price channel. Instead of betting on breakouts, range traders capitalize on price oscillations between predictable range levels like the value area high & low and the POC where most of the volume is exchanged. This approach works best in sideways markets with lower volatility.
Example:
If Ethereum consistently trades between $3,800 and $4,800, a trader may buy at $3,800 and sell at $4,800 until a breakout occurs.