In this segment we will discuss the concept behind Price Action Ranges; they are periods of oscillation in the market where supply and demand is balanced. Once this occurs, there is a high probability of a price expansion out of the range.
The basic concepts in price action ranges are the following:
- Range High Resistance - Range Low Support - Range –Mid - Deviations Range High Resistance
- This is an area on the chart where resistance is present, price action tests this area before reversing back down Range Low Support
- This is an area on the chart where support is present, price action visits this area for a test before reversing back up Deviations
- Deviations occur out of the region to generate liquidity, it is designed to trap trader before reversing in the opposite direction.