Lesson / WY-02-11
A trading range is a back-and-forth movement between identifiable upper and lower areas, with neither buyers nor sellers yet able to keep price beyond the boundaries. After a significant stopping reaction in the prior trend, the stopping extreme and the extreme of the subsequent opposing swing can serve as candidate boundaries. New swings may revise them. At least one subsequent test or swing helps establish that price is moving between these areas rather than merely undergoing a normal trend pullback.
Course content is for learning and research only. It is not investment advice.
Read the Chapter ↗Timestamps
7 lessons · Chapter contents
01Highs, Lows and the Rhythm of a Trend↗02Trend Lines and Channels: Uses, Drawing Rules and Limits↗03Support and Resistance: Zones, Boundaries and Tests↗04Initial Trading-Range Boundaries and Later Revisions↗05Breakouts, Breakdowns and Re-entry into the Range↗06Change of Behavior: From One Rhythm to Another↗07A Trend-Line Break, a Trend Stop and a Trend Reversal↗Observe the market: start with context and place price within its structure.
Understand structure: compare supply and demand, and let evidence support or revise your hypothesis.
Form a view: define risk limits and know when to reassess.
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