My rules for determining if a Valid Range exists are as follows:
1. 4 opposite alternating touch points on lines creating a sideways channel.
2. Once the 4th touch point is established, a trade can now be entered on that 4th test and bounce.
3. Depending on the time frame, I have a minimum channel width to enter the trade to create an acceptable risk to
Daily - 240 PIPS
240 M - 120 PIPS
60 M - 60 PIPS
4. I generally don't trade ranges on the 15M chart. I like this lay out, so I include it for that reason.
5. I create an "entry zone" just inside and outside the S/R lines. You can choose how many pips your comfortable
with risking and draw that zone in.
I use Heikin Ashi candles because of the ease of identifying trends and reversals, etc. But it will work fine with standard Japanese as well.
setups on different time frames for the same pair. Depending on how much time I have, I may trade the
lower time frame so I can get in and out quickly. Or if I have quite a bit of time, I may choose the Daily
or 4H chart setup.