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Range expansion

Discussion in 'Beginners Bootcamp' started by Steven Hartwell, May 12, 2010.

  1. Steven Hartwell

    Steven Hartwell Private

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    What are some quick tips to identify a range bound market??? Or a choppy market??? Is there a certain number of range that is considered a tight range??? For example if euro dollar is only in a 100 pip range for the london session is 100 pips considered a tight range???? What number is considered a tight range???
     
  2. dkami

    dkami Sergeant

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    Hi
    i have some info on range trades you may find very helpfull and will answer most of your ? i will be happy to send it to you if you give me your e-mail address:)
     
  3. Steven Hartwell

    Steven Hartwell Private

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    hartwellsteven@yahoo.com
     
  4. dkami

    dkami Sergeant

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    pics are on there way;)
     
  5. dkami

    dkami Sergeant

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    having trouble sending e-mails ill get it to you soon:err:
     
  6. Forexwatchman

    Forexwatchman Sergeant

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    Quick tips for identifying a range:

    1) time of day since off-market hours (NY close and Asian open) typically range

    2) economic data and news reports usually drives price action the most and is the main cause for a trend's beginning, reversal, or continuation, so on days that there's not a lot of stuff going on fundamentally, you can expect a ranging market

    3) Use lower time frames (I prefer the 5 minute) for establishing the range's support and resistance levels. Look for swing points (highs/lows with long candlestick wicks).

    As far as defining a range as 'tight' or not, I don't see how that matters. What matters is identifying that the market is ranging and what levels to enter so that you don't get 'chopped up' in the middle. I would label anything below 100 pips as a tight range though. When you zoom out to the higher time frames you'll discover much bigger ranges (500 pips and up) so again it's all relative in this profession.
     
  7. dkami

    dkami Sergeant

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    Hi steve hope you have looked at the info i sent you 3 good range trades coming up AUD/USD,AUD/JPY,USD/JPY all on the 1hour chart :)

    Regards dkami
     

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