This educational strategy is designed for traders who want a repeatable decision process. It defines location, confirmation and invalidation before entry; it does not claim a fixed win rate or return.
How the strategy works
The setup combines Price range, optional ATR(14), session timing. Its advantage is selectivity: a signal counts only when price context and confirmation agree. The strategy is best treated as a checklist to test, journal and adapt to a specific broker—not as an automatic promise.
Indicators, markets and timeframe
Price range, optional ATR(14), session timing.
Pairs consolidating before London or New York liquidity.
M15 to H1 for session ranges; H4 for larger structures.
Timeframes are starting points, not guarantees. Lower timeframes produce more signals and more noise, spread impact and execution sensitivity. Confirm the higher-timeframe structure before taking a lower-timeframe trigger.
Entry rules
BUY checklist
- Mark a range with at least two clear reactions at resistance and support.
- A candle closes above resistance with expansion; a wick alone is not a breakout.
- Enter on a successful retest of old resistance as support, or use a stop entry only with a tested momentum plan.
SELL checklist
- Define a well-tested range rather than a subjective single line.
- A candle closes below support with sufficient range expansion.
- Enter after old support rejects price as resistance or after your validated continuation trigger.
Wait for the confirming candle to close. If the entry has moved so far that the planned stop no longer offers acceptable reward relative to risk, let the trade go.
Stop Loss and Take Profit
Stop Loss
Inside the old range beyond the retest swing. If that distance makes position size impractical, skip the trade rather than tightening blindly.
Take Profit
Use the measured range height, the next major level, or a risk multiple; reduce expectations if a nearby level blocks the projection.
Calculate size only after defining the stop. Do not widen a stop after entry merely to avoid realizing a loss.
Risk management
Set a fixed account-risk ceiling per trade and reduce size when stop distance grows. Count correlated positions together. Predefine maximum daily and total drawdown, and stop trading when execution or market conditions differ materially from the tested plan.
Example trade walkthrough
The chart shows one illustrative setup. Context aligns first, the marked confirmation creates an entry, the stop sits beyond the invalidation point, and the target is placed where structure provides room. In real trading, spread and slippage can alter the fill and outcome.
When to avoid this setup
Thin liquidity, spread expansion, a breakout directly into a higher-timeframe barrier, and chasing after price has already traveled most of the range projection.
How to test it responsibly
- Write the rules in a checklist before looking at results.
- Mark historical examples without changing rules after each loss.
- Include spread, commission and missed fills.
- Separate development and out-of-sample periods.
- Forward-test on demo and record every valid signal, including skipped trades.
No win rate, monthly return or “best strategy” claim is made. Results depend on market, costs, execution and rule discipline.