Range recap
Last updated
Last updated
This section talks about what a range is. A range is the area between the latest swing high and low. A new range is formed when the structure is broken.
We have our high and low to the left of the chart. This is our range. Price then closes below that low (it breaks structure to the downside)
Then the price closes inside the range. When it closes inside the range, that new low gets confirmed.
Once our low has been confirmed, we can draw a new range. The new range’s top will be the highest high (i.e. the high which caused that low). The new range’s bottom will be the confirmed low.
When trying to confirm a new range, if the price fails to close inside, the range will be confirmed when the price breaks below the swing low. When the price breaks below, the range’s top will be the high that caused the move down. The range’s bottom will be the low that got broken.
When the price breaks below, the range’s top will be the high that caused the move down. The range’s bottom will be the low that got broken.
We have our low and high to the left of the chart. This is our range. Price then closes above that high (it breaks structure to the upside)
Then the price closes inside the range. When it comes back inside the range, the new high gets confirmed.
Once that low has been confirmed, we can draw a new range. The new range’s bottom will be the swing low which caused that high. The new range’s top will be that high.
When trying to confirm a new range, if the price fails to close inside, the range will be confirmed when the price breaks above the swing high.
When the price breaks above, the range’s bottom will be the low that caused the move up. The range’s top will be the high that got broken.
When the price breaks above, the range’s bottom will be the low that caused the move up. The range’s top will be the high that got broken.
How this can be programmed: To find ranges, use an indicator like ZigZag to find the swing highs/lows. Then use the rules above to find ranges.
