All language subtitles for 2. Range context

We will know that we are in a range
within a zone of equilibrium when the

previous trend movement stops and the
market generates some sideways movement.

This should be easy to see visually. If
you cannot see that the market is

trending, you are most likely in a
range.

The market is very unpredictable, and in
many cases, determining the beginning

of the range can be complex.

Technically, we can say that we need at
least four price turns between two

boundaries to determine range status.

In this example, we can distinguish
between two ranges, a smaller one

the left and a larger one.

The key is to identify the first place
turning points as these will lead to the

further development of the range.

Here is another example.

Once the first price rotations have been
identified, we can start the manual

profile and run scenarios at their
operating levels.

This rotation phase can occur over the
course of one or more sessions or even

weeks. If it involves several sessions,
it is best to run a volume profile

together to identify the trading zones
globally.

In the context of a range, depending on
where the price is in relation to the

analyzed equilibrium zone, we can
identify two trading locations, trading

extremes and trading within.

When trading at the extremes, we look
for price reversals at the limits of the

value area, the value area high and the
value area low.

So we would look for a bearish reversal
at the value area high to try and

position ourselves to sell and a bullish
reversal at the value area low to try

and position ourselves to buy.

The low target would be to look for a
move to the VPOC and generally to the

opposite extreme.

These are some of the examples we have
looked at. At the top, we see two

examples using session profile and at
the bottom, we see an example of where

have used a fixed range profile covering
more price action.

When trading within the range, as long
as we have enough room, i .e. the width

of the range is relatively wide, we will
mainly look at the borders of the value

area, the low volume nodes and the
VPOCs.

The low volume nodes identify excellent
areas where we can expect a sharp

reversal as an entry signal.

And as for the VWAP and VPOCs, we have
already seen that they are levels that

determine the control of the market, so
we will wait for the price to produce

the effective break above them.

and we will look for the first entry to
test them.

This type of trade is limited to having
previously seen a false break, a failed

attempt to leave the value area,
commonly known as a false breakout or

This failed price discovery is important
to identify as it provides a clearer

directional context.

Here are some of the previous examples.

After the failed discovery, the price
recovers the value area and we would

activate the trade in reversal where we
would look for the visit to the opposite

end of the value area of the profile.

This move to the opposite end can be
exploited in several places.

Firstly, on the same false breakout.

Secondly, if it leaves us with a test
within the limits of the value area.

And finally, on the VPOC, if there is
sufficient distance.

And here is an example of trading inside
the range at the VPOC.

It is important that there is enough
space between the boundaries of the

area before evaluating the opportunity.

After the download move, the price re
-enters the value area high with a lot

momentum and heads straight for the
value area high of the profile.

There, the price reacts and moves down
to the VPOC where buyers reappear to

create the bullish imbalance out of the
range.

This is an example of a VPOC trade that
could have been taken.

The reasoning is that the failed
breakout at the bottom leaves a backdrop

underlying strength and suggests that a
bullish imbalance could be imminent.