Dynamic Ranges
Strategy
Checklist and setup guide
Strategy Details
General parameters: 5m time frame, XAUUSD, entries during Asia Session
(Tokyo market hours). For this strategy we’ll use two ranges, New York am
range: 9:30am - 12pm ET, and New York pm range: 12pm - 4pm ET. Since
most CFD brokers close over the weekend, use the NY ranges from Friday
ET to determine expected trade direction on Sunday evening ET (Saturday
ranges to determine Monday direction Tokyo time).
Bias & data: Based on data gathered, if the NY pm range is smaller than
the NY am range, then there’s roughly 2/3 likelihood we will see
continuation over the next day. Similarly, if the NY pm range is larger than
the NY am range, there’s a greater likelihood we will see a reversal.
Strategy Details
Indicators: Use ICT indicator by FX replay or Trading sessions on TV.
We’ll also use the fractals indicator to mark out highs/lows, a FVG indicator,
and a session indicator to mark out the Asia session.
Entry Model: First wait for a sweep of a NY pm high or low away from the
desired trade direction. Then after that lower low or higher high has formed,
wait for an iFVG to form for the entry.
Inverse Fair Value Gap (iFVG): similar to a breaker; it’s a fair value gap that is
not respected; with price closing on the other side of it.
Entry and stop loss: Some of the time you use a limit order to enter on a
retest of the iFVG with stop loss at the recent swing high/low, and sometimes
it will be a market order instead*
Take profit and trade management: Target the high or low of the NY pm
session in line with your trade direction for 2R+. If you need to extend a bit
further for 2R+ that’s ok. Put stops to breakeven once it hits 2R in your favor.
*If the trade yields more than 2R using a market order instead of waiting for a
retest of the iFVG, go ahead and market enter after the iFVG is confirmed
instead of potentially missing a nice win if no retest happens.
Strategy Details
Other rules:
Max 1 trade per NY pm H/L swept, and max 2 trades per da
If NY close - NY open is less than $2, use the trend from NY pm
instead for a more recent trend, unless it’s also flat then no trad
If there are multiple FVG in a row, use the one that provides the
best risk/reward unless it’s less than 20 cents in size; in which
case go ahead and combine the candles into one larger iFVG.
Trade Checklist
Bias identified after comparing ranges
and previous NY trend
Any NY pm H/L swept away from our
desired trade direction
Higher high prior to iFVG for shorts or
Lower low prior to iFVG for longs
As potential iFVG forms, mark out stop
loss and 2R+ take profit
Retest of iFVG (entry) unless market
order yields more than 2R
Remember, if any of the parameters are
missing, the trade quality is reduced. Aim to
only take A+ setups!
Examples
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