Sure....for range trading I trade Fibonacci levels where I only take trades in what is called the optimal trade entry (OTE) window. Specifically that window is a 61.8% to 78.6% retracment of the previous move (ie. buying the dips or selling counter trend rallies). The sweet spot (or what I refer to as the 'ss') is 70.5% (or the midpoint of those two levels) and represents a really good target to try and put the trade on. The key here is to have either a trend line or recent significant low/high to use as your stop point should the market go right past your entry. So in this example, gold broke hard at the OTE short ss at 1251.07 (refer to chart) and raced down to take out the key lows at 1223.59. For me to consider putting on a short, I would like to see the market rally back up into its current OTE short SS (which in this case was/is the 1243.70 made reference to in my original note). Once we trade to the OTE Short SS I can consider putting on a short position. Should the market break to lower lows before that event (which it did here to 1215.13) then I will have to redraw my Fibs and figure out where the new OTE Short SS is......there is no guarantee the market will co-operate, you just have to live with what the market gives us...hopefully that all makes sense....cheers and gl trading....
I learned this strategy from a hedge fund manager. He as a very extensive tutorial series on YouTube. If you really want to learn how to trade like the pro's then I highly suggest you take a week or two and watch all of his videos...it will change you forever....http://www.youtube.com/user/InnerCircleTrader?feature=watch