October 5, 2024

INDIA TAAZA KHABAR

SABSE BADA NEWS

7 Reasons for LOSS in Rangebound Market

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.

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