I have seen several posts mentioning that the pair was caught in a "small range" and should not be traded.
I have noticed that during hours when the markets are closed pairs will establish a small range of 10-20 pips and bounce up and down in them over several hours.
I have also noticed that over an extended period of time the price will bounce off pivot/support/res. levels in a 40-50 pip range.
Why should you avoid trading these ranges? I would think that once the range is established you could take advantage of it. Is the risk that you might get caught on the wrong side of a dip or spike?
I have noticed that during hours when the markets are closed pairs will establish a small range of 10-20 pips and bounce up and down in them over several hours.
I have also noticed that over an extended period of time the price will bounce off pivot/support/res. levels in a 40-50 pip range.
Why should you avoid trading these ranges? I would think that once the range is established you could take advantage of it. Is the risk that you might get caught on the wrong side of a dip or spike?