Longing High in Ranges


Shorting Low in Ranges
Generally speaking, Low probability.
The exception to this rule is when we have APD sequences.
if a correlated asset is running an extreme or repricing a P/D gap & reversing the asset that is higher in the range is permissible to trade.
Take a look at my ES long today, it utilizes this logic.
If we don't have this specific logic, often times price will stop you out, as your invalidation prints a HTF gap.
This also blends with the idea of gap selection for continuations and SMT-fill, which I have talked a bit about but will make a future video on.
This concept, simply is...
If your stop loss is an SMT-fill but is the low/high of a HTF gap forming
Then do not take that trade.
I.e. Don't take a M15 SMT-Fill if we are printing a M30 gap.. and so on and so forth.
One way we can trade LTF gaps with HTF gaps printing above/below is utilizing the ideas of Strength switching and 2-stage-CiC.
More to Come... I'll need video format to truly explain this.
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