Range trading is a simple strategy that can be used on almost any financial product although this article is mainly directed to currency pair trading. Range trading is pretty much just as is sounds, find the range that a product regularly trades in, buy low sell high in the case of a long order and sell high buy back low with a short order.
Time scales in MT4
Proper use of the time scales will help you to figure out the current price trend of your currency pair or commodity. The first thing you need to do in range trading is to establish your range to trade. To do this you will need to look at multiple time scales. Be aware of the long term range from the W1(Weekly) and D1(Daily) scales but they may be too large to see the range you wish to trade. Look at the H4(4 hour) and H1(1 hour) scales to see the current trend of your product. Watch the M30(30 minute) and M15(15 minute) scales to see the recent trading range and more recent trend. The M5(5 minute) scale will show very recent range and trend while the M1(1 minute) scale is not really useful to show a range, but does show the almost immediate movements in value. This scale can be used to try to pin point a bottom or top in the range taking care not to make reactionary trading decisions based on this fast moving scale. Movements in this scale may seem dramatic, but typically do not reflect the greater trend.
Article Source: http://EzineArticles.com/8119464