How to trade Range Deviations
Here is a quick summary of the Entry Models VC I hosted last week in @Chroma_Trading, where I explained all these concepts thoroughly and answered all questions possible
1/10
Here is a quick summary of the Entry Models VC I hosted last week in @Chroma_Trading, where I explained all these concepts thoroughly and answered all questions possible
1/10
How to identify the setup
- impulsive moves are usually followed up by less volatile periods, where price ranges between 2 key swing points without sweeping either one
- wait for the sweep of one of the range extremes, followed up by a rotation back inside the range
2/10
- impulsive moves are usually followed up by less volatile periods, where price ranges between 2 key swing points without sweeping either one
- wait for the sweep of one of the range extremes, followed up by a rotation back inside the range
2/10
How to trade the setup
Variant 1:
- range sweep
- reclaim of the range
- double BoS
- entry inside imbalance
- target range lows
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Variant 1:
- range sweep
- reclaim of the range
- double BoS
- entry inside imbalance
- target range lows
3/10
How to trade the setup
Variant 2:
- range sweep
- reclaim of the range
- single BoS
- entry at range extremes inside imbalance
- target liquidity inside the range
4/10
Variant 2:
- range sweep
- reclaim of the range
- single BoS
- entry at range extremes inside imbalance
- target liquidity inside the range
4/10
Specific Range Deviations
IRDRI (impulse, range, deviation, reclaim, impulse) - continuation pattern for altcoins
PCSN (pump, consolidation, spike, nuke) - reversal pattern for altcoins
Po3 / AMD (Accumulation, Manipulation, Distribution / Expansion) - powerful move
5/10
IRDRI (impulse, range, deviation, reclaim, impulse) - continuation pattern for altcoins
PCSN (pump, consolidation, spike, nuke) - reversal pattern for altcoins
Po3 / AMD (Accumulation, Manipulation, Distribution / Expansion) - powerful move
5/10
Why does it work
- price is ranging = liquidity built up on both sides of the range
- price sweeps one side = other side becomes the biggest target
- price reclaims the range with BoS after range sweep = indication of reversal
- double BoS = even better chances of reversal
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- price is ranging = liquidity built up on both sides of the range
- price sweeps one side = other side becomes the biggest target
- price reclaims the range with BoS after range sweep = indication of reversal
- double BoS = even better chances of reversal
6/10
What pairs to trade
$BTC and $ETH give really nice simple deviations
Altcoins work best with IRDRI / PCSN
Forex works best with Po3
Here you can see a trade I took on $TRU last week:
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$BTC and $ETH give really nice simple deviations
Altcoins work best with IRDRI / PCSN
Forex works best with Po3
Here you can see a trade I took on $TRU last week:
7/10
Rules to follow
- range needs to be clear (no uptrend / downtrend)
- price swept only one of the sides
- don't enter a trade near the eq
- don't trade outside the range
- don't trade weekend ranges (too narrow, easy to manipulate)
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- range needs to be clear (no uptrend / downtrend)
- price swept only one of the sides
- don't enter a trade near the eq
- don't trade outside the range
- don't trade weekend ranges (too narrow, easy to manipulate)
8/10
Backtest results
I backtested this strategy on $BTC
Timeframe: m5, m15
Period: 2 weeks (19/03 - 02/04 2023)
Trades: 9
Wins: 8
Profit: 17R
9/10
I backtested this strategy on $BTC
Timeframe: m5, m15
Period: 2 weeks (19/03 - 02/04 2023)
Trades: 9
Wins: 8
Profit: 17R
9/10
Thanks for reading and I am free to ask your questions!
Next entry model is using Volume Profiles together with ranges for even more profitability!
Join @Chroma_Trading in time for tomorrow's VC where I will explain that model 10 time better than I can here!
10/10
Next entry model is using Volume Profiles together with ranges for even more profitability!
Join @Chroma_Trading in time for tomorrow's VC where I will explain that model 10 time better than I can here!
10/10
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