Range considerations
Some considerations for identifying ranges at an early stage in real time are;
- That price could be creating a pullback or bias change and as the chart unfolds for you a new high or low could be made voiding the potential range.
- There are several definitions of a range one of the more common ones is that you are looking for a double touch of support and resistance. For me this is a little too late in the game as price may not create the double touch as in the example above. With this price action method you can identify the possibility of a range developing VERY early without having to worry IF price does or does not give you the double touch. As you can see with that definition you would interpret that price is not range bound at all but, you can clearly see visually that price is moving sideways without any definition.
What you should have learnt from this short article
- A simple rule defined method to identify swing highs and lows
- How to use this swing high/low definition to interpret price action market phases
- How to identify a bias change
- How to identify trending price action
- How to identify Range bound price action
Bias Change pattern variation
In the below images we can see the pattern variation and compare them to the outlined pattern above. The only main difference is that you are looking for a breach of a previous swing high or low as the first qualifier to indicate a potential bias change.
Acronyms used
- HH - Higher High
- HL - Higher Low
- LH - Lower High
- LL - Lower Low
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