Playing Ranges: a small thread.
Ranges seem to be one of the hardest concepts to grasp when studying price action. Not only they are tricky to detect at first but also demand some context to be executed properly. Here is a brief exhibit on Sushi.
Ranges seem to be one of the hardest concepts to grasp when studying price action. Not only they are tricky to detect at first but also demand some context to be executed properly. Here is a brief exhibit on Sushi.
As you can see, context is key: as @RektProof mentioned on his last S/D vs Liquidity thread, marking out orderblocks within the range may be counterproductive since price is attracted by liquidity.
Based on this idea I always look for the following:
1. Mark out range highs and range lows
2. Look for supply/demand orderblocks above/below those extremes
3. Plan trades according to my strategy
1. Mark out range highs and range lows
2. Look for supply/demand orderblocks above/below those extremes
3. Plan trades according to my strategy
IMPORTANT: When it comes to ranges liquidity is an extremely important factor, so make sure price has collected some before drawing new levels.
For example: if price broke structure to the downside but left behind two equal highs, very often your orderblock will be invalidated and price will collect that liquidity before making its movement.
Making ideas out of local lows/highs being broken without taking liquidity into consideration is how you get trapped.
In this case Sushi is showing some similar behavior, so I posted my ideas on the chart to shed some clarity on how Im playing it.
Remember: a three-tap setup is a really powerful play, when playing ranges your first goal should be to position accordingly.
END.
Remember: a three-tap setup is a really powerful play, when playing ranges your first goal should be to position accordingly.
END.
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