1. Once we got above 6800 we’re in a new area for price, we’re potentially making a new upmove till top of the range between 5.85k-9.97k.
We made a higher low withing the range, so that’s why we can expect to move to the upside of the range
2. Where you are relative to HTF range is gonna tell you what, longs will make most sense in bottom part of the range, shorting would only make sense is price is above 50% of the range
The higher you are in the range the higher the reward a short has, the lower you are in the range the higher the reward a long has (not higher probability per se). That’s why it doesn’t make sense shorting 6k because it’s the bottom side of the range.
3. Mark the 50% of the range
And you can split it up into quarters as well, so take the upper part of the range to 50%, and bottom side as well = range within a range.
--> What you’ll see if you mark these levels, is that OB (=orderblocks) will appear around these levels
If we’re playing a range and we’re starting an uptrend, you don’t wanna see price go back below the 25% of the range (coincides with key level at 6.8k).
4. Look for OB’s around these key levels
Why is this order block relevant?
It’s just above the 50%
It stopped price on the way up
AND there are a lot of stops above that wick = short liquidity!! Very important
Shorts would make more sense in that range, if it breaks and acts as support it’s very bullish
We have another OB at the 25% level, price reacted multiple times to it and can now act as support
Then we have a breaker: down candle before upmove that broke market structure, price is at that level right now. Can act as resistance, not immediate reason to short, but if you’re long this is a good position to hedge.
The yellow line is a potential SR flip, the pink OB is a 4h OB where you can look for longs, but we expect the yellow line to already act as support
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