Trading the Range
Based on months of learning from George1Trader on Twitter, I just wanted to pop this tutorial up to demonstrate what I would define as a great example of BTC trading inside a range.
These ranges can been found on any timeframe, but this one is on High Time Frame to demonstrate why I am currently bullish on BTC. The theory is simple:
1. A range is formed after a large move up or down
2. “Sweeps” of range high/low should be deemed as a liquidity hunt and usually means a move in the opposite direction
3. Locate if there are any consolidations from previous PA outside of the range....this is where liquidity will be resting
4. Dump or pump into consolidation block often demonstrates a major liquidity hunt designed to trap breakout traders
5. Assuming the dump/pump into consolidation block leads to price re-entering the range: trade it!
Important to note, try to avoid the temptation to trade during the deviation....trade once price re-enters the range. Thats your confirmation! Stops would then sit below the deviation, with take profits at range high/low. I usually have a 50% TP set at range high/low in case price decides to continue its move....which is common.
Hope you enjoy!
These ranges can been found on any timeframe, but this one is on High Time Frame to demonstrate why I am currently bullish on BTC. The theory is simple:
1. A range is formed after a large move up or down
2. “Sweeps” of range high/low should be deemed as a liquidity hunt and usually means a move in the opposite direction
3. Locate if there are any consolidations from previous PA outside of the range....this is where liquidity will be resting
4. Dump or pump into consolidation block often demonstrates a major liquidity hunt designed to trap breakout traders
5. Assuming the dump/pump into consolidation block leads to price re-entering the range: trade it!
Important to note, try to avoid the temptation to trade during the deviation....trade once price re-enters the range. Thats your confirmation! Stops would then sit below the deviation, with take profits at range high/low. I usually have a 50% TP set at range high/low in case price decides to continue its move....which is common.
Hope you enjoy!
Pernyataan Penyangkalan
Informasi dan publikasi tidak dimaksudkan untuk menjadi, dan bukan merupakan saran keuangan, investasi, perdagangan, atau rekomendasi lainnya yang diberikan atau didukung oleh TradingView. Baca selengkapnya di Persyaratan Penggunaan.