📉 What are deviations in a range and why is it important for traders?

Deviations in a range are the price fluctuations of an asset from the average level during a period when the market is in a state of consolidation, meaning it is moving within a horizontal corridor without a clear upward or downward trend.

Why is this important?

Defining boundaries: Deviations help traders determine the upper and lower limits of the range, allowing for more precise entry and exit from trades.

Spotting reversals: By observing deviations, one can catch moments when the price is ready to break out of the range and start a new trend, providing excellent opportunities to enter a position.

Risk management: Understanding deviations allows traders to set more accurate stop-losses and take-profits, reducing risks and increasing the likelihood of successful trades.

Studying and utilizing deviations in a range is an important element of successful trading, enabling traders to operate as efficiently as possible even during periods of market consolidation.$BTC