7 Reasons for LOSS in Rangebound Market
As traders, we might have observed that the market remains range-bound or that trades are very narrow. Due to this behavior, a trader either has to close in loss or no profit. In this video, we will discuss the rangebound market and 7 reasons why a trader has to incur loss due to the rangebound behavior of the stock market.7 Reasons are as followsDelay in Trading Signal
Time value premium decay is NIL
The expected move is postponed for the next trading day
The majority view is the same as the smart money view
Create liquidity in anticipation of a breakout/breakdown before a big event
To create delusion among retail traders
The market is kept rangebound with the help of the CASH segment. Normally, during a rangebound market, the cash and derivatives segments give opposite signals.
