Range
boxesThere are a lot of new followers, and even the old followers need to review of how to draw boxes. Practice makes perfect. Part one.
HOW TO recognize TRADING RANGE - TREND is your FRIEND!Hi traders,
I didn´t open a trade yesterday, so I decided to record an educational video for you.
My favorite topic (and very hard to implant for many traders) is TRADING RANGE.
The most most most crucial ability is to recognize if you are in a Trading Range or in a Trend. Every stage of the Market requires a different approach!
You can find a lot of complicated tools on the web that describes Ranges... Why make things complicated?
My tool is simple - Swing Highs and Lows. They tell us everything about the market.
I focus on the theory followed by examples on the SPY ( AMEX:SPY ) chart.
Happy trading!
Jakub
FINEIGHT
RANGE BOXES4.4.20 I see that more and more people are following my videos, and I appreciate your interest and hope to provide value. There are certain things you must do for you won't find value from this. You will have a lot of questions when you open up a chart and try to reproduce my range boxes. This is a good thing, and if you persist you will draw these boxes perfectly fine before you know it. The fact that you would draw range boxes is a process that will give you subtle awareness that will benefit you in ways that will become apparent later. The trick is to start drawing the lines and to recognize that they will get better the more you use them.
What is a Range-Bound Market?Sometimes, price bounces between two specific levels for long periods of time. In times like these, we have what we call a “ranging market.”
LEARN MORE
How to trade in range/consolidation periodA lot of people asked me what to do in the case when the price is stuck in consolidation.
You can use Fibonacci retracement and create a range (0, 0.25, 0.5, 0.75, 1) and put it from swing low up to swing high. By that, you will create key points where the price will react on during consolidation time.
You can use it on all Timeframes and it does not matter if it is Monthly, Weekly, Daily or minute chart.
As you can see here, price very nicely reacts to each of our levels which we have set up once the range has been established. Also, when the price is stuck in consolidation range you do not want to trade it. Avoid it. You will make many mistakes, rather you should focus on a clear bullish/bearish trend.
normalization/range clamp for cbci testExample chart testing artificial range clamping for the Constance Brown Composite Index (CBCI), which was deliberately designed to not be range bound to address some of the limitations and shortcomings of the RSI formula.
Here, an artificial value clamp/range bound 0-100 is reintroduced in the name of science, to see what would happen to key crossovers on a momentum-enabled indicator with no defined "floor" or "ceiling".
In short, I'm a huge fan of the CBCI - this isn't the first, and most certainly won't be the last time I explore modifications to the composite index and RSI.
DXY Daily Chart : Technical AnalysisMessage to learn more about how to trade the basket pairs with this chart
HOW-TO GRID TRADE: How-to Find A Profitable Grid (Tutorial #4)HOW-TO GRID TRADE:
How-to Find A Profitable Grid
Using The "Grid Range Finder" Indicator.
WHAT TO LOOK FOR...
The best GRIDS are placed in sideways channels, consolidation areas, ranging markets and slowly upward trend areas. In seeking a place to start your next grid, you should seek out support areas, preferably during a sideways or upwardly trending time period. It's near impossible to predict how long this type market condition might last, but the ideal grid will run for 2 days+. Some grids can run for months!
Did you miss my previous GRID TRADE tutorials? ( Start from the beginning )
ESTABLISH A RANGE
Your next task is to determine a range depth for your grid (I suggest 4% to 8% as measured on the chart - though you may find other measurements better depending on the crypto you're trading, the average market volatility and your available capital) . This is why, when using the "GRID RANGE FINDER INDICATOR" you'll appreciate the "Auto-Fibonacci Lines" added to help in projecting how high or deep your range might go. In most cases, your range should span between either support and resistance or a nearby Fibonacci line.
Once you've discovered your range "sweet spot" and a good starting point, "box out" a projected grid range that has logical support, resistance and fib parameters with a span (bottom to top) that does not spread your capital too thin nor expose you to too excessive risk.
GRID YOUR RANGE
In Tradingview, you can easy create a range box using the "Date and Price Range Drawing Tool" or the "Rectangle Drawing Tool." If you want to create actual grids in your range box, you can use the "Gann Box Drawing Tool" and play around with the settings if you are hard core. At the end of the day, this is only to give you a rough idea anyways. Your actual grid range area is automatically create in your Crypto Grid Trading Bot within minutes after setting up a few parameters (simple, simple) . So don't over do the time invested in drawing on your TV chart, keep it quick and simple. Find your range, put the parameters in your Bot and start making money!
HELPFUL TOOLS
THE GRID RANGE FINDER INDICATOR is ideal for traders pursuing this type GRID TRADING strategy. Yes, it's true that the trading process itself is typically automated, however the first and most important step for you, is to find a sideways, consolidating, ranging or slowly upward trending market. Review the other GRID TRADING tutorials I've published so that you can master this fascinating (and profitable) trading style. It's not that hard and it's well worth the effort.
THE GRID RANGE FINDER INDICATOR will assist you in scouting-out market opportunities where a grid opportunity may be waiting. This indicator provides support and resistance lines for both long and short term price action, plus uniquely incorporates red and green COLORED trend tendencies in both the support and resistance lines, as well as in "Trend Dots" at the bottom of chart.
TIPS FOR HOW TO USE THIS INDICATOR
TO HELP FIND OPTIMAL GRID TRADING OPPORTUNITIES
Use this indicator in combination with other indicators to fully maximize your results.
First zoom out and determine the overall structure and phase the market is in (long term) .
Remember, GRIDS perform best in sideways or slow upward ranging trends. Look for this.
THERE ARE NUMEROUS WAYS TO USE THIS INDICATOR
BELOW IS ONE WAY, TO GET YOU STARTED:
The STEP NUMBERS below are illustrated on the charts above.
1. Watch for a major support point.
2. Followed by a higher minor support point.
3. Start grid during GREEN trend indication (as seen on indicator trend dots or trend support line)
• If using Heikin Ashi candles (recommended) start grid on a GREEN candle
4. Map out your grid range of 4% to 8% using Support & Resistance lines and/or Auto-Fibonacci lines on chart.
This is not a "SIGNAL" type indicator, it is a valuable tool (or aid) designed to assist you in conjunction with other indicators and market knowledge. Some grid traders use ONLY this one indicator, but you should evaluate the others I've created which may help you refine your grid start parameters and opportunities. For additional help there are details below.
PLEASE HIT THE LIKE BUTTON (and follow me... lots of great stuff in the works!)
As always, I appreciate your support. Please share with others.
ENJOY!
Dan Hollings
Master Crypto Grid Trader
Please Explore My Other Indicators, Scripts, Grids and Educational Ideas.
@ DanHollings on Tradingview.
HOW-TO GRID TRADE: How Grid Automation Works (Tutorial #2)HOW-TO GRID TRADE (Tutorial #2):
How a Crypto Trading Bot Automates Your Trades +PLUS+ Quick Set-Up Tips
OK - TUTORIAL #2 - LET'S UNDERSTAND WHAT WE'RE DOING
Automation via a trading bot will help you execute your grid trading strategy. (The bot I recommend is linked below and connects to your choice of 25+ various exchanges. My instructions are specifically for "my recommended grid bot" though the concepts should work anywhere.)
CHART NOTE: If chart above does not display illustrations properly, please expand window or adjust scaling so you have THREE clear and separate examples. Or, scroll down for a screenshot image of these illustrations.
Did you miss Tutorial #1? ( Go Here )
SET-UP IN MINUTES
Your grid bot can be set-up with your range, grid spacing and capital investment amount within minutes. Your grid trading bot will initiate a start-up BUY, layout your future orders in a grid and continue placing and filling orders as price fluctuates, so you can benefit from any sideways and ranging market.
You can grab a coffee, a beer or some spring water, sit back and watch (or better yet, spend time with your family!) In the meanwhile, cha-ching, cha-ching… one zig, one zag at a time, your odds of making money are good. Of course this assumes you’ve done your homework, set things up properly and picked an optimal time. Your only risk is a sudden price plummet (and yes this happens from time to time) but with a stoploss or counter strategy in place, you’re pretty much in hands-free mode and can check your progress once or twice a day.
Next, let's explore in details of how the Crypto Grid Trading Bot actually works. In our random example, I'll use BTC/USD pair and the following bot settings:
ILLUSTRATION SETTINGS:
Price range: $16,000 - $24000
Quantity of grids: 9
Amount per grid: 1 BTC
NOTE: Please focus on the concept, not the random range or investment levels in this illustration. This example is not meant to be a real signal or set-up! Just grasp the concept.
1. GRID BOT CREATED
Once your grid bot is created, it will distribute buy and sell orders based on your investment settings, range and equal grid spacing (or grid profit targets) . The BUY orders will be placed below the current market price, while the SELL orders will be placed above the current market price. If needed, bot will automatically buy or sell currency to create grid. You will be prompted to confirm every step in the process. It’s fast, easy and fun.
Remember, in this example we are only placing LONG buy orders and selling when price moves up one grid (there is NO SHORTING involved).
Also remember, you can NOT edit (change settings) on a running grid bot. But you can stop your bot thus opening up the option to create a new one.
STOPPING YOUR GRID BOT
If for any reason you want to stop your bot (perhaps you messed-up, perhaps you change plans, perhaps the market starts looking negative, perhaps you want to take your profits, perhaps you want to move grid to a new range)... you can cancel your bot at anytime. I’ll cover this in greater detail in a later session of this tutorial series, but for now just be aware that upon bot cancellation - when you stop your bot - you may have open positions remaining that must be dealt with manually on your exchange or trading platform.
CANCELLATION RULE: Every time you stop a bot, check your exchange for open positions and either sell, set limit order(s) or perhaps hold the crypto your bot has bought. The bot will automatically remove standing buy and and sell orders (you can double check your exchange to confirm this if you like).
2. PRICE MOVES UP
You’ve started (in our example) at $20,000. When the price moves up to $21000 the first sell order is executed. The bot will place a new buy order one grid below at $20,000.
3. PRICE MOVES DOWN
When the price moves down to $19,000 your bot will execute BUY orders at both grid lines ($20,000 followed by $19,000) . During that price drop , your bot will place new SELL orders at $21,000 and $20,000) after each executed buy order. And so it goes… your bot buys, your bot sells and grid lines are replaced with new open orders as the next grid line (up or down) is hit. Simple as that.
4. YOUR RESULTS
This trading method will generate profit as the market ranges up and down. It works as long as the market movement stays in your predefined range. The “recommended grid bot” (see footer below) will automate this strategy for you and provide accurate reporting on your profit results.
12 QUICK TIPS FOR STARTING
In future sessions of this tutorial series, I’ll cover important areas such as: how to find sideways markets, slowly trending ranges, and optimal grid bot starting points. I’ll even cover indicators that can help you with your grid trading strategy -AND- our Discord community specifically dedicated to future “Grid Masters."
For now, please follow these basic steps:
1) Get your grid bot account.
2) Connect your bot to your preferred exchange.
3) Start with a cryptocurrency you trust (BTC or ETH or a top 10 coin) . Something you’d be ok holding (HODL) if worse came to worse.
4) Wait for a market where you expect or anticipate sideways or slowly upward ranging price action.
5) Keep your total grid range (lowest grid to highest grid) within 4% to 8%.
6) Select a grid count that renders your grid spacing (distance between each grid line) to a space comparable to typical zigzags you see in recent price action. Typically a .5% to .6% space between gridlines (as measured on your Tradingview chart) is a good place to start.
7) After your settings are enter in the bot, do click the backtest button. Double check setting, make tweaks, backtest again until you are happy.
8) Invest MINIMALLY on your first few bots (say $100 or something you can afford to lose) . Think of your first grid bot as a “learning experience.”
9) Set a stoploss under your grid (there is a setting within the bot for this) . If you don’t mind holding the coin if prices temporarily drop , then you can forego a stoploss.
10) Don’t dream of riches, instead anticipate all goes well and you get a rather healthy ROI (better than a bank and perhaps better than your trading results/ROI using other non-grid strategies).
11) If your first bot does not go well (worry not, remember the first time you tried to ride a bicycle?) . Review what happened and try again. 3%, 5%, 8% gains might be just around the corner.
12) Give your bot time to “do its magic” (perhaps 3 days, a week or longer) ... as long as prices are within or very near your range, you can leave your grid up and running.
Why not? You’re making money!
LIKE THIS (Click LIKE Under Chart)
SHARE WITH FRIENDS - THANK YOU!
HOW DO I LEARN MORE?
1) Review my related IDEAS and TUTORIALS (linked below)
2) Explore my GRID INDICATORS (linked Below)
As always, I appreciate your support. Please share with others.
ENJOY!
Dan Hollings
Master Crypto Grid Trader
Please Explore My Other Indicators, Scripts, Grids and Educational Ideas.
@ DanHollings on Tradingview.
Harmony in BNB Harmonic waves analysis with some market pattern recognition and range structure. I will add fundamentals a bit later for everyone on recent news.
Blue boxes are where I would seek buy opportunities. $35 seems to be a floor on the hourly. Please observe all touch points and read on how harmonics play a role at major price action points that cause reversals (think of it as tug of war or a train station going from one station to the next picking up people).
Zoom out and manipulate the chart and you will see how harmonics are creating a butterfly effect.
Day Trading Trend or Trading Range? Can be applied to investingIn the previous article we discussed only trading on strong trend days or strong markets. We also identified what increases the likelihood of a day (or market) becoming a strong trend. As said before, there are only a handful of strong days a month (or only a few strong markets at any given time). Because of this, it is just as important to identify and understand when a market is likely not a trend and more likely a trading range.
Within the first hour or two of the open (when day trading), it is often obvious if the day will likely become a trend day or a trading range. Once the market has been identified as likely a trading range, it is unlikely to become a trend day as the market tends to continue what it has been doing. In this case it is more likely to continue to have heavy two sided trading and less likely to convert into a strong and healthy trend.
But wait - most channels are some form of trading range right? Yes. This is a form of slanted trading range, or a trending trading range. This is where the market is technically in a trend but it is very weak and likely to reverse at any time. In fact, by the close it will likely reverse and the trend is unlikely to remain intact.
Characteristics of a Trading Range Day
"............"
So if most days are not trend days and are instead some sort of trading range, cant a day trader use this information to his advantage? Of course, if it aligns with your trading style or method. But you must understand that you are not likely to win on many trades, or win a large reward. Instead most trades even strong ones, only go for 1X the risk. On top of that there are many trades to take, most of which fail. This makes it difficult to remain focused and continue trading without emotions and without missing the trades you need to win to recover losses.
What about only taking strong trades like ".......?" That is a reasonable thing to do, but the probability is still often lower and the reward is as well. And on these days most stop order entries fail, resulting in repeated failures. This is a "............." If not, you will likely get stopped out just before prices go your direction! Or the market will only go in your favor temporarily before stopping you out.
This makes trading difficult for beginners and even for those with experience. However most do not realize they should simply remove themselves from the market during these times. Instead they continue to trade as they think they should, and continue to grow losses, making it harder to recover even on a good trading day.
"I do not like to trade when the market is likely to reverse at any time. I only like to trade when the market is not likely to reverse at all." - Josh Ridenour
**These ideas and strategies can also be applied to higher time frames and even long term investing.
"..." = withheld material from original post (members only material).
If you found this helpful please like! Feel free to comment or ask questions
KNOW WHAT TO LOOK FOR IN A RANGE PATTERNThe market is working a range pattern the majority
of the time which is good news if you know what to look for.
Range patterns are full of information that will help you anticipate what comes next, so you can trade. Here are 3 examples that will make you chart smarter!
The first chart is my personal favorite range pattern. When you see a well established range, watch for price to "overshoot" your expected high or low. When that happens, get ready! As soon as it goes past the expected high or low, place pending orders to sell from the top or buy from the bottom. If price comes back to the range, it will come back fast!
The 2nd chart is an example of past performance predicting future price movement. During a range pattern, look back 15 bars from the middle of the range, and anticipate the market moving that far in the opposite direction. In this example, the solid arrow is predictive of the dashed arrow.
The last chart is an example of how the typical slow or no momentum you would expect is happening in the middle third, shaded in orange. To and from the outer edges of the range, momentum shows up.
GOLD - Weekly - Multi-Timeframe Analysis Series 1GOLD has a correlation to the strength of USD, as a risk-off asset investors seek haven in the event of Dollar weakness (USD falls > GOLD rises). I'm sure there's more to it than that, be sure to check it out online for yourself.
Comments
As anticipated during the breakdown of the Monthly timeframe, looking at the Weekly you can see how we respected the 20/50 EMA wave and bounced to the upside. Considering the amount of deceleration looking left when we previously approached the upper level of the zone, and comparing that current price conditions, I foresee more upwards pressure this week in the form of consolidation. Monthly swings take much longer to develop and turn around than that say on of the Daily time horizon.
If I am to get short on GOLD it will be after a push to the upside into the 1330 region, or below the 1280 level. The only problem with getting short below 1280 is we'd be trading directly into the 20/50 EMA wave (which is a big negative trade confluence). This is an unnecessary risk in my opinion.
Key Note
Taking a short at the top of the range has less risk than shorting closer to the median / Weekly mid-level of the range.
GOLD - Monthly - Multi-Timeframe Analysis Series 1GOLD has a correlation to the strength of USD, as a risk-off asset investors seek haven in the event of Dollar weakness (USD falls > GOLD rises). I'm sure there's more to it than that, be sure to check it out online for yourself.
Comments
The Monthly timeframe has a clear to identify trading zone from 1330 - 1180 region. Alone this isn't enough to form a thesis for the direction of GOLD in my opinion due to the level of acceleration into the resistance zone of 1330's. Looking left you can see a clean sell-off followed by a decisive buyers rally. This tells me there's interest in buying GOLD which could see prices near the highs before a fall back down to the bottom of the range.
Looking at the candlestick formation at the top of the zone, we have a nice high test candle which stands out from the rest of the price action looking left. I would like to see more deceleration though before trading GOLD to the downside.
The current month hasn't come to an end yet, so the most recent Monthly candle cannot be considered complete.
Key Note
During a ranging market, the EMA's will trade sideways and cannot be used with the same set of rules as during a trending market. If a range is formed on the Monthly timeframe however, a trend can exist on the lower timeframes. You need to be aware of your time horizons when considering confluences. Price always rules over indicators.
Daily Range - EURUSD exampleSome of the typical occurances in the day week in week out. Here's what needs to be taken note :
1. Price hit the range has high probability for the price to reverse or move sideways (especially after London closes)
2. If price hit the range, sometimes it is followed by a "final" push (breaking the range) before a reversal happens. Some like to call it Market Maker manipulating the market or stoploss hunt or the usual "fake breakout"
3. If price exceeds the range by significant amount, most likely the following day its gonna be a quiet market (paying the market in advance).
4. Price exceeding the range more often than not a result of price not hitting the range by significant amount in the last 2-3 days (paying back the market)
This is NOT a trading strategy, just another analysis tool like you would in analysing Support and Resistance or Supply and Demand.
If you like the writeup, give me a follow, find me at youtube 'Sufian FX Trading", reach me at twitter sufian_fx for discussion or questions. Thanks
Today's Lesson (#3) : Adjusting your trading to the ContextHope this idea will inspire some of you !
Don't forget to hit the like/follow button if you feel like this post deserves it ;)
Indicators used in this forecast are PRO Sinewave BETA & PRO Momentum .
You can check my indicators via my TradingView's Profile : @PRO_Indicators
Kindly,
Phil
If you want to learn more about the basic rules to trade with my indicators here's the educational video link :
EURUSD range-in-range effectGood morning,
today i checked out the four-hour-chart and saw that range-in-range effect which we can see many time while the market is running sideways. This effect always has a big range, a small range in between that big range and a neutral area. Those three levels are mostly decisive for the next movement.
What does it mean in this case?
The market is currently in that neutral area. At this level i am not doing any trades since it is completely open whether it goes long or short. Thats why i am just spectating the market and wait for the moment when the market is leaving this area. If it leaves the area long i will focus at long trades only if it leaves short i will focus on short trades only of course.
Whats the sense of it?
The neutral area is mostly in the middle of the big and the small range. We know that we have a Ping-Pong-Game inside a range. So if the market is leaving this neutral area long/short it will mostly test the upper or lower range line.
For example : if the market leaves the neutral area to the long side I could plan long trades with a target the range line from the small range.
The small range lines will decide if the market entries the upper range or the lower range area. Thats why you can see that small range also as a "neutral area" regarding the big range if you only want to focus on trade with big range targets.
Summary : i will wait for a break out of the neutral area to find possible long/short entries.
How to Trade a Range and Potential BreakoutHello Traders,
All of us want the price action to follow the direction of our trade but that doesn't happen always. The price action has a natural tendency to move up and down; build ranges and develop patterns. Most of the ranges and patterns are like whipsaws and many traders stuck in these situations and lose money. The most effective ways to deal with such a price action is patience and a better strategy. When I say better strategy that means the one which keeps you ahead of the others.
In this backdrop, I have tried to spot better entry points in case the price action builds a range after a nice up move and we are visualizing a potential breakout on upside. The basic principle behind the strategy is to "Buy at the low and Sell at the high". It should be noted that the entry spots can not guarantee sure win but surely minimize our risk and increase the chances of reward. After an entry, stops can be placed either below the range or below the prior swing low -- whichever suits the situation.
Same strategy can be applied, in opposite direction, in case the overall trend is down and we visualize a potential breakdown after a range.
Notes on the chart.
Hit like for better educational publications in future. Comments are welcomed.
Trade safe.
Best Regards
Bravetotrade
