Originally Posted by bubble

Range what is it and how can it help us ?



When talking about range most people think of it in the context of a trading range where the price is bouncing between support and resistance and therefore the market is classified as trading between a range or the securities daily range which is how many pips on average the security moves in a day.

There is another use of the term range which we are going to look at here, and this refers to how far the price can travel into its previous range before a trading opportunity is discounted or in simpler terms how far the price can travel into the previous peak/trough.

Remember the creeping trend where for instance in an uptrend the price is making higher lows and higher highs but each higher low comes into the range of the previous peak.

Price can trade into its range in a trend , at a top/bottom, during role reversal, when trading in between a normal range and its important to consider this in your trading as it can give many clues to help us with entries and timing when to take a trade.

To find the range in an uptrend we need to look at the top of the previous swing down then we need to find the area where the top was broken the price should not close past this area otherwise it is considered that the uptrend has been broken.Once you get the hang of this you will notice that the turning points i always talk about usually happen around this area.


ok will continue this later with some examples.

bubble

Originally Posted by bubble

First of all your chart is wrong if you wish to continue from my previous post make sure you post the correct chart.

The channel was formed between the gold and magenta line then the price made a new high and has since been testing the top of the previous channel which is previous r becomes new support.
There were several opportunities from retest to enter from the gold line long up to a new high and the same from the magenta line up to the highs again.

bubble