EMAflowPRO -Ranges-

4 июн. 2023 г.

DISCLAIMER: Always, please keep in mind that market conditions change, past results cannot guarantee the same results in the future.

EMAflowPRO - Ranges-

EMAflowPRO ranges indicator will detect key movements in the market that fit certain conditions and based on that create key tradable zones by providing dynamic and static range levels.

Before reading further please take a look at the indicator values names on the right in the main chart above - these names are linked to the content below when we talk about range structure. The examples included in charts are linked to the area we're discussing (if something was said - most likely closest chart demonstrates it - Also arrows present entries; can be limit or can be market buy/sell in to the wicks.)



Let's find out what indicator does...

Static range logic:

Indicator uses combination of market timing indicators (counting relationship between candles) , fisher transform, stoch rsi, bollinger bands to detect important market price action that show strenght - based on that it will project a static range where key goal is to predict where market will be extremely oversold, extremely overbought or where market could change bias etc.


The setups it provides are very similar to those that come out of harmonic patterns - but it was developed with unique approach without knowing what harmonic patterns are.. so it's not completly the same.

Range is represented by 3 tradable areas (actual trade ideas on charts - arrow points towards a level - on the right there is a scale with a number- limit order can be placed there )


Top of the range - It serves as a shorting area or if top is converted to support can also signal a potential breakout or start of new trend.

Example of a short the top of the range:

29732 - is area where wicks can be sold in to , or limit sell is placed - with higher leverage sl should be tight, with lower sell orders can be spread out up to the middle with sl just above 30500, targets can be choosen based on the provious range top as % moves point.





Example of longing the levels on the recent rise - price staying above middle of the top of the range keeps bias on the upside and potentially signals a break out or start of new trend



Uppper, Middle, Lower part of the range: Sideway area - middle of the range decides direction , above favors the upper levels , below favors the lower levels.

Very nice example where white line is middle of the range and shows that even in strong trend - range projection is able to accurately predict key pullback areas that provide substantial gain. See image below - again settign limit orders where middle of the range is allows you to get a comfortable entry with very big risk reward ratio.



Bottom of the range - market is extremely oversold

Spx example of our recent range from last year's summer - again chart includes both EMAflow indicator and EMAflow ranges as all indicators are extremely complementary and present two sides of the medal sideway and trend view.

Chart only contains ranges but shows the same pair and time:

If price goes below middle of the bottom of the range it could signal a break down or start of new bearish trend.

Dynamic range logic

Since sometimes static range gets broken out or is not respected and the price action is not yet sufficient to generated a new one we included a dynamic supply demand part where dynamic range is generated working in a similar way but does add clarity when static range fails.

example of this can be seen when ftx caused a btc dump we broke through the bottom of the range but dynamic range later showed us new bottom we could trade.
Confluence between both can also provide even more sure levels to place limit orders or to market buy or sell when wicks in to that area occurs.

Minuses:

Since ranges tend to work best when market is sideway - a second part is recommended with EMAflowPRO where focus on moving averages helps you navigate stronger trends.


Not all tfs are well synced with ranges on various assets so you will need to flip through few ones to find the best timeframes that historically worked the best - if you come across an asset that doens't look good you should just change timeframe to higher until you see something that fits or change asset until you get something that looks clear.


Settings:


EMAflow - Ranges - allows you to preset minimum potential of a trade setup you want to look for - default is 6% that ensures you can get a good setup on lower and higher tfs.