Ranges Flashcards
What causes a range?
A range is built as an accumulation/distribution zone as BFI’s or the composite man builds his position. We can typically get a better view of what he’s doing by looking at the HTF narrative.
Keep in mind that a side-effect of this is that LQ is built on both sides of the market. Keeping in mind the HTF narrative can increase our probability of catching the break out of the range.
What’s the soonest point that we can recognize that we’re in a range?
The soonest point that we can recognize that we’re in a range is when the weak swing point fails to get taken and price CHOCH’s back, then we could very well be in a range.
IE: Price is unable to break the targeted swing point and CHOCH’d back.
What is the safest way to trade a range?
The safest way to trade a range is by staying out of the middle and only entering the the top or bottom thirds (30% and 70%). We can target the beginning of the opposite 3rd to have a safe TP with good RR.
Extra confluence is S/D and OF (then normal LTF entries)
In the photo, the first failure to break the weak low is the first indication/confirmation that we’re in a range. With the CHOCH, we can target the beginning of top 3’rd, then bottom 3’rd, then repeat, for a total of 60R with only 1-2 losses.
What TF do ranges mostly show up on?
Since there is more movement on the LTF, they tend to have more ranges (1M ranges are untradable because they’re so small, this is OF), but ranges can appear on all TF’s so it’s important to track them and understand the HTF narrative.
