The ONLY Way To Successfully Trade Trading Ranges - A Complete Guide To Price Action

what's going on traders now in this video i'm going to try to explain to you how to find a high probability setups while trading trading ranges and how to avoid taking losing trades because a lot of traders they love these big uptrends or these big downtrends because it's fairly easy to find some good pullbacks but if you master the skill of trading trading ranges successfully your trading will improve so in the first portion of the video i'm going to show you guys how i actually traded a trading range today live and i recorded it and

you will see what is going through my mind how am i trading it when i see the trading range live prices print on the chart and in the second part of the video i'm going through all the reasons why i took the trade and how to find these high probability setups and what should you be looking for so if you just want to skip to part 2 and then go back and watch the live part that is a good option as well [Music] so [Music] so [Music] [Music] [Music] so [Music] [Music] so [Music] [Music] [Music]

[Music] [Music] [Music] [Music] [Music] so you guys just saw how i traded the trading range and what was going through my mind as the prices were printing on the chart but let's now talk about how to find the high probability setups and how to avoid taking losing trades while we are trading trading ranges so the first thing we need to realize that the trading ranges is formed by a support and by resistance and that's the most important thing you need to do you need to find the current key level and this was the current high

and this is the current low of the pre-market open session as i came in so what i did the first thing i'm going to do i'm going to try to find the key level i'm going to draw these lines on the chart so it helps me to remember where are the lows and where are the highs now the key with trading trading ranges is for most part to avoid trading in the middle and just focus on buying low and selling highs but more importantly the fading the breakouts because regardless of what you've been reading on

all these forums on all these books most breakouts of trading ranges will fail just because one breakout out of 10 will eventually work and succeed doesn't mean that is a you know winning strategy most breakouts of these trading ranges will fail just like it's happening now live we broke the training trading range and we're going back into the trading range fading the trading range is the best way to find a high probability setup but now that we know that we are buying the lows and selling the highs that's not the only thing we are interested

in i also need to draw the shortened trend lines because there's a rule in price action that just because trendline broke doesn't mean that the trend is reversing the traders will wait and will retest the previous high so in order for me to successfully buy the low or sell the high what i need to do i need to wait for previous trend to play out just like here we would see the downtrend working lower we have a break and a new low so from this point on the downtrend played out and it's safe for people

to buy the market and they did we have option working low higher we have a break first leg to a new high pull back second leg to a new high we don't want to sell anything right here or buy anything we are in the middle so we wait for prices to go to the other side and here would be a good setup to take so this is pretty easy to identify this trading range and once again we have a trendline working lower we have a break and a new law right here so this was my

first trade that i took you guys can see the big bearish bar you know a lot of traders are afraid to go long to buy this market after they see such a big bearish bar because it indicates a momentum all the indicators are showing you that sellers are in the market but is the thing with indicators indicators are lagging they always show you only after the fact so while traders are watching in real time everybody's thinking that there are sellers jumping and selling the market so they're afraid but there's a lot of institutions and a

lot of small traders who are just keeping their resting limit orders in here and they will just buy blindly it's worth for them to buy blindly because if you're buying blindly three times a year it's it all three trades would have won and eventually one trade will fail so you still put your odds on your favor and i saw a big bullish reversal box so this was my first trade that i took and we are broken up higher and we have a first entry short this was the first attempt by the bears to continue to

push market lower we pushed above the ema and the second entry short now i did not take this trade because i was still holding my my runner and that's the another important thing you need to realize when you're trading trading ranges you need to hold the runners you don't just want to be scalping because you catch some of the most you know some of the biggest trades that you can catch is when you buy the lows or you sell the highs or when you fade the breakouts this is the instance that you will catch the

biggest runners as ever so don't just rely on scalping you want what you want to do is you want to scalp and scale out with the runner and hope for market you know to give you all the profits and this is a failed second entry short so this is a high probability setup this is notice how i marked only this one trade in the middle of trading range why because it is a failed second attempt that's second entries is a tie down to human psychology and we pushed above the ema ema was holding prices the

trend line was holding prices this is what it's called a key entry point the trend line is key entry point and ema is key entry point and key entry point is the point when high probability setups occur so you always want to find the key entry points so this is 21 bar ema and here was the little bit trickier thing that happened because we were supposed to go to the opposite side of the training she was supposed to go to the highs and we just didn't make it there is a gap and instantly sold off

so i was a little bit hesitant to buy here there's not good signal bar either way but since we didn't make it to the highs of trading range there's something telling you that there are not a lot of buyers still left because you proper trading range you goes from one side to the other one side to the other all over the place here there is a gap so a lot of sellers starting to come into the market so you just want to be patient you have a low right here and once again first century short

pull back second entry short this high probability setup we're not looking to short the market because we would be shorting the support we are looking for failures for a little bit weaker traders who want to go short into the support unfortunately this setup this signal bar is way too big for sticking to our rules but if we just had the better signal bar this is a two felt attempts in the previous direction once again we pushed above the ema and a nice bullish sentiment is now being established this is what we want to see and

prices were working up higher we're working up higher we're now inside of this trend line and we come came back to this resistance we made this bearish bar and we instantly sold off this happened so quickly i wonder what this was you would have even got you wouldn't have even had a chance to enter this trade so and you cannot enter this late this trade would have already if you just sold this trade right here you would have got your scalp but it happened so quickly that it instantly came back and now you don't want

to enter because your scalp portion is you know fulfilled and you want to wait for another opportunity but you guys can see even the selling the support steal it still worked but it is not ideal when the when you miss the trade and you want to chase it but we're still inside of this trendline so i might i recommend for waiting for break and a new high and now you guys see we pushed we broke the resistance and most people will tell you to buy the breakout but you don't want to buy the breakout you

want to sell the breaker you want to fade the breakout sell the breakout to the upside and notice how we are far away from ema right here but we are still inside of this trend line so once we pull back to the ema pull back to this key entry point there was a still quite few buyers left in the market willing to buy and they just read the market up just a little bit created a double top and a big bearish reversal bar now this is telling you something the people went long on a breakout

pullback trade and all they did is managed to push the double top right here and as most breakouts will fail once again those institutions the smart traders they will be looking to sell any breakout because all these people keep their stops right here and they want to leverage all these tops right here so this was my second trade that i took a nice birch bar a double top right here and you're still quite away from the ema it stalled a little bit but you guys can see how good of a trap it was because everybody

was keeping their buy stop right here people went along right here and who went along right here after a failed breakout they all kept their stop right here and you guys can see what it did it did look how good of a trap this was this is how you can recognize the trap the momentum that's being generated by this trap is really substantial and we have this trend i'm working lower and i was holding my runner at this point on we have overshoot and overshoot of the trend line will at least lead to a break

or possibly straight up reversal and you have the straight line working however your first leg two new height pull back second leg to a new high now you created a new high of this uptrend so this up trend is over because we have a new high we are retesting the resistance once again there's a three touches to the resistance and one push higher i tighten my runner and i got tapped stopped out unfortunately i should have kept my runner in place but i re-entered instantly once this is a triple top right here and one push

higher this fell trap and a nice bearish reversal bar you know that you're probably going to push lower and once again my runner got stopped out once again but just remember this is the way you trade trading ranges you want to wait for prices to get to key entry points to these key levels and the reason why you don't want to be shorting just so quickly right here because the same thing that i was talking about here happened right here we were supposed to go to the other side but we bounced from the middle so

i just don't want to short this even though this bounce off the resistance there is some sign that there's not many people left selling the market because it was supposed to go down here so you want to let the bulls get trapped so you don't want to sell here you don't want to sell in here and this is a triple attempt and we finally have a new high this high is higher than this previous high new high of this up trend so now it is safe to go long and you have a first century short

second entry short be close below ema a big bearish bar ema ski entry point and such a gigantic bar where this is the first break of this channel so we are expecting a new low of this channel working lower we're coming off the field breakout so there's a high high chance we're going to go to the other side and once again we have a fail break lower and instantly pull back back into trading range so this is how you want to trade the trading ranges i know it's a little bit scary i know it's scary

to sell the market this high but that's exactly how the market is designed market is counter-intuitive now i'm going to say once again the market is counter-intuitive forget everything you've learned in real life all your real-life experience because it is tempting to sell the lows and buy the highs because the market has proven to us that it is doing something market is proving to us that it's going higher or it's going lower but in trading you want to capitalize on exactly the opposite anything that makes common sense you want to throw it out of the

window because trading doesn't care about your common sense you need to shift your brain and rewire it thinking only about what is happening on the market and following sticking to the price action rules you always want to stick to rules of your strategy and don't be afraid to take these trades because what you don't want to do you don't want to miss all these trades and then take one trade and that will be a loser you need to stick to your edge stick to your strategy and take all of these trades and you know you

will be successful because there is no denying the price action right here works and you guys just saw it in my ra live real time example as i was look this is really the chart i'm filming this a few minutes after i'm done with this so you guys can see exactly how i draw the trend lines and what was going through my mind when i was watching charts print mark prices print on the chart so this video will help with you guys i really appreciate it you made it to this very end so hit the

like button i really appreciate it and you can subscribe to the channel if you are interested in learning about day trading so i'm gonna see you guys in the next one and remember just forget about common sense