When price is in a range why do some people buy at the top? lol

Depends on how liquid the instrument is, what came before, what's happening now and what's anticipated. In your example, the range is anticipated to continue, whereas the entry for a successful break out trade anticipated the opposite. Also something to consider in your example is whether the positions are being initiated or closed through execution of market or standing limit orders.

 

I like number 8 ROFLMAO!

 

it maybe because the range had reached at that time the vertical support on the bigger time-frame

 

ROFLMAO 80% attempted B.O.’s fail. Top and bottom.

 

Because trading with the short term momentum and big money that runs stops placed at obvious support/resistance is a legitimate strategy.

 

It could be a range on a 5 min chart in a bull trend but a b.o. of a bull flag on a 15m or 30m chart and the trader may be playing the larger TF. LOL

 

Here is a market that is currently trading. Is it quite dumb to buy at the red X? Surely much better to buy at the yellow X?

 

Hello propwarrior,

You ask a very good question.

I trade the small timeframe charts in futures. The reason I buy at the top range.

1. Price is moving upwards, so I hope it continues to go higher, and breakout of the range.

I am betting the price will continue to go higher.

 

There's no trend. I would stay out.

 

Good post.

Question:

1. Is buying yellow X and selling red X consider counter trend trading?

Thanks,