How I Trade Using Trading Ranges
UB’s Trading Range Concepts
Understanding Trading Ranges
Range High: Formed after price sharply rejects previous highs.
Range Low: Established when price bounces strongly after sweeping lows.
Liquidity Zones: Identify areas with high liquidity, as they drive price movement.
Trading Strategies Within a Range
Ping Pong Trading: Buying near the lows and selling near the highs until a breakout happens.
Breakout Trading
Enter after a successful retest of the breakout.
Set a stop-loss below equilibrium.
Target profits at the range high or low.
Neutral Bias: Avoid strong directional bias while price remains inside the range.
How to Trade a Range
Using Equilibrium (Midpoint)
Equilibrium = 50% of the range, calculated using the Fibonacci tool.
Above equilibrium → Favor long positions toward the range high.
Below equilibrium → Favor short positions toward the range low.
Entry & Exit Setups
Long Trade
Wait for lows to be swept.
Enter long when price reclaims equilibrium.
Take profit at the range high.
Short Trade
Wait for highs to be swept.
Enter short when price rejects and falls below equilibrium.
Take profit at the range low.
Advanced Techniques
Mini Ranges Within a Range
Identify smaller tradable zones inside the larger range for additional opportunities.
Stop-Loss Placement
Hard Stop: Below the low that triggered a strong bounce.
Soft Stop: When equilibrium or a key trendline turns into resistance.
Scaling In & Out
I enter positions gradually (e.g., 20% at a time).
Profits are taken at multiple levels - range highs, midpoints, and breakout points.
Conclusion
Trading ranges involve recognizing liquidity zones, key levels, and price reactions.
Key Takeaways
Identify strong ranges.
Trade between highs and lows.
Use equilibrium to guide decisions.
Adjust stops and entries based on real-time price action.
If price breaks out, shift to a breakout strategy.