————-- 005 - Dealing range
Lets dive a little bit more in the complexity and understanding of dealing ranges.
As we tapped upon the basics we know that they have two sides;
Premium and Discount.
To put simply again:
The highest probability short positions happen in the premium side
The highest probability long positions happen in the discount side
Discount = Buy program
Premium = Sell program
These areas are then set up with different arrays and strength.
Overall this is the order in their own place and ranking seen below:
So each of the arrays have their own weight in the specific discount/premium area once we cross equilibrium.
We use these not only for entry points, but also as targets as mentioned before. We look at what the price is trying to reach for.
So, we enter on one-side of the dealing range, and target the opposing side of the dealing range. It is good to understand how that works, so you can experiment with partials.
Let the concept of internal vs external liquidity play again:
- Everything within the current dealing range is internal liquidity, everything outside is external.
- Defining a dealing range is quite simple. We want to identify the strong high and strong low in comparison to where price is trading right now.
- The list speaks for itself. As you start experiencing the market a lot more, you will also notice that the exit points become clearer, such as displacements or previous highs/lows.
- Equilibrium is also an easy target to hit, which often is enough to
Lets talk a bit more about the importance of equilibrium, when you are in EQ and don't have positions running, you will have to admit that there is no idea where price could go to.
Goes back to what we were saying near liquidity chapters, cheap vs expensive.
These are the the hurdles that we sometimes will consolidate in for a longer period of time, the best thing to do then is to sit back and wait for more clarity.
————-- 006 - Dealing range example
Expansion to the downside, awaiting confirmation
We see a structure break, now we can define the range
Premium vs discount marked
Now we need to mark all significant PDA;s, keep your chart clean.
Most related arrays in each section
OB's and two displacements
Here we see our ideal setup. OB tapped after break of displacement
Long in discount, targetting the PDA's in premium
You must await confirmations as we saw here.
- Expansion in one side
- wait for break of previous structure
- confirms the internal range
Keep your charts clean and focus on the main arrays, it is good practice to mark everything. But it can overlap many times, so keeping one POI is more than enough
The goal is then to catch a move from one side to the other side of your range
And once price breaks your range... what could that be?
External liquidity ;)
————-- 005 - Dealing range
Lets dive a little bit more in the complexity and understanding of dealing ranges.
As we tapped upon the basics we know that they have two sides;
Premium and Discount.
To put simply again:
The highest probability short positions happen in the premium side
The highest probability long positions happen in the discount side
Discount = Buy program
Premium = Sell program
These areas are then set up with different arrays and strength.
Overall this is the order in their own place and ranking seen below:
So each of the arrays have their own weight in the specific discount/premium area once we cross equilibrium.
We use these not only for entry points, but also as targets as mentioned before. We look at what the price is trying to reach for.
So, we enter on one-side of the dealing range, and target the opposing side of the dealing range. It is good to understand how that works, so you can experiment with partials.
Let the concept of internal vs external liquidity play again:
- Everything within the current dealing range is internal liquidity, everything outside is external.
- Defining a dealing range is quite simple. We want to identify the strong high and strong low in comparison to where price is trading right now.
- The list speaks for itself. As you start experiencing the market a lot more, you will also notice that the exit points become clearer, such as displacements or previous highs/lows.
- Equilibrium is also an easy target to hit, which often is enough to
Lets talk a bit more about the importance of equilibrium, when you are in EQ and don't have positions running, you will have to admit that there is no idea where price could go to.
Goes back to what we were saying near liquidity chapters, cheap vs expensive.
These are the the hurdles that we sometimes will consolidate in for a longer period of time, the best thing to do then is to sit back and wait for more clarity.
————-- 006 - Dealing range example
Expansion to the downside, awaiting confirmation
We see a structure break, now we can define the range
Premium vs discount marked
Now we need to mark all significant PDA;s, keep your chart clean.
Most related arrays in each section
OB's and two displacements
Here we see our ideal setup. OB tapped after break of displacement
Long in discount, targetting the PDA's in premium
You must await confirmations as we saw here.
- Expansion in one side
- wait for break of previous structure
- confirms the internal range
Keep your charts clean and focus on the main arrays, it is good practice to mark everything. But it can overlap many times, so keeping one POI is more than enough
The goal is then to catch a move from one side to the other side of your range
And once price breaks your range... what could that be?
External liquidity ;)
————-- 005 - Dealing range
Lets dive a little bit more in the complexity and understanding of dealing ranges.
As we tapped upon the basics we know that they have two sides;
Premium and Discount.
To put simply again:
The highest probability short positions happen in the premium side
The highest probability long positions happen in the discount side
Discount = Buy program
Premium = Sell program
These areas are then set up with different arrays and strength.
Overall this is the order in their own place and ranking seen below:
So each of the arrays have their own weight in the specific discount/premium area once we cross equilibrium.
We use these not only for entry points, but also as targets as mentioned before. We look at what the price is trying to reach for.
So, we enter on one-side of the dealing range, and target the opposing side of the dealing range. It is good to understand how that works, so you can experiment with partials.
Let the concept of internal vs external liquidity play again:
- Everything within the current dealing range is internal liquidity, everything outside is external.
- Defining a dealing range is quite simple. We want to identify the strong high and strong low in comparison to where price is trading right now.
- The list speaks for itself. As you start experiencing the market a lot more, you will also notice that the exit points become clearer, such as displacements or previous highs/lows.
- Equilibrium is also an easy target to hit, which often is enough to
Lets talk a bit more about the importance of equilibrium, when you are in EQ and don't have positions running, you will have to admit that there is no idea where price could go to.
Goes back to what we were saying near liquidity chapters, cheap vs expensive.
These are the the hurdles that we sometimes will consolidate in for a longer period of time, the best thing to do then is to sit back and wait for more clarity.
————-- 006 - Dealing range example
Expansion to the downside, awaiting confirmation
We see a structure break, now we can define the range
Premium vs discount marked
Now we need to mark all significant PDA;s, keep your chart clean.
Most related arrays in each section
OB's and two displacements
Here we see our ideal setup. OB tapped after break of displacement
Long in discount, targetting the PDA's in premium
You must await confirmations as we saw here.
- Expansion in one side
- wait for break of previous structure
- confirms the internal range
Keep your charts clean and focus on the main arrays, it is good practice to mark everything. But it can overlap many times, so keeping one POI is more than enough
The goal is then to catch a move from one side to the other side of your range
And once price breaks your range... what could that be?
External liquidity ;)
3 MB
Complete Lesson
