Perfect example of ranging PA and the trades that worked

< 1 min read

This is the definition of ranging PA:

respects levels
169 goes striaght through the middle
new highs get sold and new lows get bought

Open is at 169 and the market reverses at SUP 1, then again at he TL … all the way down to SUP 1 again … from there it goes back up to the TL

In this PA, mean reverting trades work and my best one of those is the 3Min Bolli

Later in the session SUP 1 did break and the 3Min Bolli failed but the break did nothing and was quickly reversed.

THOUGHT PROCESS: I have setups for this PA but I still get caught up in it because I am trading as if the market is about to break; until it does, I should be trading as if it will continue to range which means avoiding break out setups and sticking with mean reversion trades – so my focus should be on asking myself where the next level will be and avoiding trades in the middle of the range.

Thought process