Trading the daily range…

When intraday trading I use my specially designed, “Daily Projections indicator.” Actually, I use it in some form in all of my trading but, when  daytrading , I consider it essential.  Why, because it works and in works because, like fibonacci, it is a staple of Market Maker algorithms.   See the chart below for explanation of the data displayed by the indicator before we get into how I use it for my trading.

Just how valuable is this indicator to my trading?  Well, I’ve given you access to my fxblue trading account statement.  Look at it over the last 6 weeks because.  If you think those results are acceptable then it works.  If not then, it doesn’t work…

Click on chart to enlarge… then click cross hairs above to see full size…

usdjpy 1hr Thursday March 21 2019

  1.   Shows the range in number of pips from low to high for the current day.  On this example the range has been 44.7 pips from low to high.
  2.    Shows the expected maximum range in pips for the current day.  In this case the projected range is 55 pips. So, when the price range reaches 55 pips we say that price has reached an exhaustion level.  The current daily range is 10.3 pips away from exhaustion.  55 pips – 44.7 pips = 10.3 pips.  When the current days range #1 reaches the current day’s projection #2, the market has reached exhaustion has been reached and the probability of a reversal has greatly increased.  Therefore, we are looking for a reason to enter a trade at exhaustion levels.
  3.      Shows the exhaustion level above current price.  On the chart the bullish exhaustion level is marked by the green line above #3 current price.
  4.      Shows the exhaustion level below current price.  On the chart the bullish exhaustion level is marked by the green line below #4 current price.

When you look at numbers 3 & 4 you will notice that the display also tells you what you should be looking to do at that level.

#3 exhaustion above is where we look enter short trades and exit any open longs.

#4 exhaustion below is where we look to enter long trades and exit any open shorts.

Okay, we have letters A & B marked on the chart.  Letter A is a percentage of the upper exhaustion level and B is a percentage of the lower exhaustion level.  As you can see, when we add lines for A & B we create zones.  An upper zone and a lower zone.

Aggressive short entries are executed at A, and conservative short entries at the upper exhaustion level ( green line #3 ).

Aggressive long entries are executed at B, and conservative long entries at the lower exhaustion level ( green line #4 ).

In other words, we trade those zones the same way i teach to trade all zones.  Buy the lows (support ) and sell the highs ( resistance ).

As far as the safest entries are concerned that never changes regardless of what kind of levels…that is The principle I’ve always taught.