Dealing Ranges - Powerful filter tool to your trading

Hello Traders today. I ll break down for you how to enter on a pullback with high accuracy and not being stopped out by using a fibonacci in other words a Dealing range.

A Dealing Range forms when price takes out both a swing high and a swing low, followed by a clear expansion move. That expansion swing becomes the dealing range.

• By dividing the dealing range in half, we get two zones:
• Discount region (lower half) – where buying opportunities are typically more favorable.
• Premium region (upper half) – where selling opportunities are typically more favorable.
• You can think of a dealing range as similar to a PD Array Matrix, but specifically applied to expansion swings rather than consolidation phases.

On the example bellow I drew a Dealing range. If I took the long from the key level in the premium the trade would fail. But if waited for the key level in discount I could get much better RR and explosive move vice versa is happening on the bearish order flow charts. Check on your charts



So why is this situation on the above happening quite often?
It's simple - Liquidity. Market makers needs liquidity to fill their orders so they print nice trade opportunities in the premium where trader enter this setup, for trend continuation.



Setup is technically right. But by placing the trades in premium they creates a stop loss cluster = liquidity in the discount. Then this happen - price go for the liquidity of early buyers in the premium hits key level in the discount and it continue with the trend.



Im not saying that key levels in the premium cant work, in the strong trend there is no always pullback to the discount. But by applying Dealing ranges you will get:

• Less but more accurate trades
  
• Higher Risk reward setups
  
• You can build HTF narrative
  
• Use it for targets
  
• Better risk management
  

Remember, there is not always a key level in the premium and pullback to the discount is not enough. Trade must go from a key level. So if there is not a key level in the premium price is often retracing to the discount key level in order to create a liquidity around a key level price makes a false break which sucks traders in to the market and create a liquidity on a key level.
Dont enter if price is not going from key level its a trap.



Time frame alignments
Always use 2 timeframes Higher time frame (HTF) and Lower timeframe (LTF)

• Higher Timeframe (HTF) = Dealing ranges
• Lower Timeframe (LTF) = Market Profiles / Profiling

Timeframe sequence

• HTF Monthly - LTF - Daily / H4
  
• HTF Weekly - LTF - H4 / H1
  
• HTF Daily - LTF H1/ M15
  
• HTF H4 - LTF M15 / M5
  

Im giving 2x LTF options because sometimes you need to scale lower timeframe to understand price action and best entries. However for the confirmations you can do well with the main sequence of first two.

Apply this rule to any markets. Im adding links to few examples from stocks, crypto an FX where you can see application of this concept. Click to charts to open them and see how price behave in discount and premium.


Examples from successful Tradingview Ideas
Tesla pullback to the discount - Low created in discount ATH most likely coming

Bitcoin pullback to the discount - Followed by expansion to ATH

Palantir pullback to the discount - followed by expansion to ATH

Bitcoin pullback to the Discount - followed by expansion

GBPCHF - Targeting Liquidity in the discount

Hope this help you in your trading journey. Let me know in the comments

David Perk aka Dave FX Hunter