How I draw ranges and how I do trade them.
1/ BULLISH RANGE - when the OLD range is broken upside.
Bullish range.
The OLD range was broken upside - marked with OLD lines, circle is where breaking the range happened. The swing low
that made the move that broke the OLD range is your new range low, the last down candle prior the swing low that made
the move that broke old range is your bullish orderblock. The rst swing high after breaking the OLD range is your new
range high.
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2/ Bearish range - when the OLD range is broken downside.
The OLD range was broken downside - marked with OLD lines, circle is where breaking the range happened. The swing high
that made the move that broke the OLD range is your new range high, the last up candle prior the swing high that made the
move that broke old range is your bearish orderblock. The rst swing low after breaking the OLD range is your new range
low.
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How to trade bullish ranges - H12/H1
Step 1 - H12 range low sweep
We had our range and you can see the SFP /swing failure pattern - when a candle wicks below range low and closes back
above/ also called a sweep marked with the purple box. Once we have a con rmed sweep /you should wait the candle to
close/ you zoom in and search for your trigger. Since this is H12 range, you zoom in on H1.
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How to trade bullish ranges - H12/H1
Step 2 - H1 trigger
H12 candle closed as a sweep on the H12 range low. This was our HTF trigger and having it we have zoomed on H1 to get our
LTF trigger and entry for a long. On H1 you want a bullish MSB - the H1 swing high that made the swing low to get broken,
and the H1 bearish OB to be ipped in H1 bullish breaker. Once you have this you are good to place your limits for long -
either at the MSB line or somewhere within the breaker. Stop loss at the sweep wick and take pro t at the opposite range
aka the H12 range high.
fl
fi
How to trade bearish ranges - H12/H1
Step 1 - H12 range high sweep
We had our range and you can see the SFP /swing failure pattern - when a candle wicks above range high and closes back
below/ also called a sweep marked with the purple box. Once we have a con rmed sweep /you should wait the candle to
close/ you zoom in and search for your trigger. Since this is H12 range, you zoom in on H1.
fi
How to trade bearish ranges - H12/H1
Step 2 - H1 trigger
H12 candle closed as a sweep on the H12 range high. This was our HTF trigger and having it we have zoomed on H1 to get
our LTF trigger and entry for a short. On H1 you want a bearish MSB - the H1 swing low that made the swing high to get
broken, and the H1 bullish OB to be ipped in H1 bearish breaker. Once you have this you are good to place your limits for
short - either at the MSB line or somewhere within the breaker. Stop loss at the sweep wick and take pro t at the opposite
range aka the H12 range low.
fl
fi
General rules that I tend to follow.
1/ Always wait the candle closure. You can have a sweep on the range but the candle could has 6 more hours till closure and in
the last minutes to break the range.
2/ Longs are preferable in a bullish range, shorts are not preferable in bullish ranges.
3/ Short are preferable in a bearish range, longs are not preferable in bearish ranges.
3/ Always wait for MSB on your lower time frame.
4/ If the RR /risk/reward/ is below 2R preferable do not take the trade.
5/ Always look on the left for possible older range that you have missed to mark, sometimes it happens that you drawn the
range but the price is in an older range actually.
6/ Higher the time frame = higher the probability. One of the reason I do trade H12/H1 mostly.