How I Create My Intraday Trading Ranges

I use my intraday ranges for day trading, I use HTF trading ranges for my swing trades.

Step 1: Start on the daily time frame and establish a range low.

I do this by including as many candlestick bodies and wicks as I can. I want as many points of contact as possible. I do not try and aim for a specific amount of contact points.

Step 2: Establish a range high using the same exact method as step 1.

This example is especially perfect because our range high is also a support and resistance flip. We even saw 2 candles "fake out" above the range high.

Step 3: Take your fib and use it the same way you would if you were using it on candles. Instead, start at your range low, and drag your tool to the range high.

Next, take your trend line tool and put a trend line where the .5 fib level is.

This is your EQ or equilibrium.

Step 4: As you can see you have a decently wide range which won't help very much for day trading or even scalping.

What I like to do here, to get a more defined range is to cut my ranges in half again.

Repeat the step above. Use your EQ as the range low.

Notes

The equilibrium should not be adjusted to get as many points of contact like we did for the range high. Mark the .5 fib with a trend line and DO NOT move it.

HTF = High Time Frame

LTF = Low Time Frame

EQ = Equilibrium (50% of the trading range)

If I'm using a range like this to scalp, I also like to mark out intraday areas of support or resistance. I don't rely 100% on these ranges but they are the foundation of my trading style.

Also note that I use other methods to find confluence of these ranges on HTF.