Rattibha

𝐃𝐄𝐗𝐓𝐄𝐑

16 Tweets 147 reads Dec 07, 2023

I USED TO HIT SERIES OF SL 💔UNTIL I UNDERSTOOD HOW TO USE TRADING RANGE
This will also help you know where the liquidity/ inducement is,where price is going to and also where to pick your POI from
A Thread 🧵

A trading range helps us understand where we are in the market and where the liquidity is. Trading range helps us get a better view of the market direction,internal and external range liquidity and POI to pick our trades from.

For a range to be formed, we will need a QM (Quasimodo) on both sides. But because the market is fractal and so is the QM, we need to focus on the logic
A QM is equivalent to SH (strong High), SL(Strong Low), WH (weak High), and WL (Weak low).

If you don’t know what a QM (Quasimodo) is👇🏻
A Quasimodo (QM) is simply a lopsided Head & shoulder pattern with more detail of course. It is from this pattern that the concept of Strong Low/High and Weak High/Low was made from. In other to make it easy for you,you can just call them Strong and Weak Highs/Lows instead of Quasimodo.
Bearish and Bullish example of a Quasimodo
•Sweep of Liquidity
•Break of structure

Let’s continue…
In every trading range there needs to be a trap/ inducement but it’s also important to know how ALGO STRUCTURE works to trade this effectively .Having the ability to understand these traps and identify them will allow you to anticipate where the market is likely to draw to and it will teach you how to
approach certain situations.

BULLISH AND BEARISH TRADING RANGE

In a Bullish scenario you are to buy below the Inducement which is the trap and in a Bearish scenario you’re to sell above the inducement and target either the weak high or low

A Textbook example of how trading ranges work
Remember ✍️Structure ,Liquidity and Ranges works together
You have to combine them.

Bullish Scenario
Proper bullish trading range

Bearish Scenario
Live Analysis GU

It’s also important to note that when price sweeps the inducement and breaks a structure the intentions of that trading range has been completed.

STRUCTURE
LIQUIDITY
TRADING RANGES
Happy trading guys😊

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