Step 2 (Identify the market Conditions) Ranges

You may have noticed, the market doesn’t just trends, sometimes the market ranges between certain price points. When this happens, we say the market is in a range.

Notice that, a range on a lower time frame, would often present as a series of indecision candles on a higher time frame, or a consolidation.

When you notice a series of indecision candles forming on 1 hr chart, go to the lower time frame, and you would spot a range happening.

If you notice the indecision candles on the 4 hourly, the range is happening on the hourly chart

And if you notice the indecision candles forming on the daily chart, the range are forming on the 4 hourly chart.

It is important to truly know which time frames the range is happening.

If a market is ranging on a 5 minutes time frame, and you place an order on the hourly time frame, chances are that you set yourself up for emotional torments and often failure.

The market would never trend until it has broken out of a range, even if that range is on a smaller time frame.

This is how a ranging market looks like.

Range

From the image above, you can see the market ranged between the two red horizontal lines for a while before breaking out.

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