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Weekly Range Rotationa market going sideways for a month

Evidence: WeakIntermediateSwing · Range

Sometimes a pair spends six weeks between two prices. Every trend strategy in this library loses money in that market, and this one is the deliberate opposite: buy the bottom of the established range, sell the top, and accept that the trade dies the day the range does.

It is rated Weak for a reason worth reading. Ranges are only identifiable after they have formed, and the same chart that shows a beautiful four-touch range shows, three weeks later, a base that broke. There is no known rule that tells you which in advance.

Everything on this page is measured in daily bars. A rule that says 'twenty bars' means twenty trading days — about a month — and a stop that survives that has to be wide enough to sit through a normal week.

Category
Swing · Range
Timeframe
D1 · range measured over four to eight weeks
Suitable pairs
EURGBP · EURCHF · AUDNZD — crosses between economies that move together
Session
Daily close
Indicators / tools
Donchian(20) as the range · ADX(14) to confirm there is no trend · ATR(14)

Valid setup

SW-05 · WEEKLY RANGE ROTATION — VALID SETUP AUDNZD · D1 · four touches of each side and a flat ADX — the range is established before the first trade LONG 0.8474 0.8494 0.8514 0.8534 0.8554 0.8574 0.8594 THE RANGE — two touches each side required before trading it TARGET = the middle 1R RANGE HIGH TARGET = the middle of the range ENTRY = close in the bottom fifth RANGE LOW STOP = 1 × ATR(14) below the range 1 2 3 4 0.8580 0.8540 0.8516 0.8500 0.8486 ① First low — a level, nothing more ② Second low, second high — now it is a range ③ ADX under 20 throughout, or none of this applies ④ Close in the bottom fifth — enter, one position only ⑤ Stop an ATR outside the range, never widened ⑥ Out at the middle, or after fifteen days

Exact rules

Entry

  • Range gate: ADX(14) below 20 for at least ten days. If the ADX is rising, there is no range.
  • The range must have at least two touches of each side before the first trade. A single touch is a level, not a range.
  • Entry: a daily close in the bottom fifth of the range, for a long. Mirror for shorts.
  • One position at a time. Averaging into a range that is breaking is the classic way this strategy takes a very large loss.

Stop loss

  • 1 × ATR(14) below the range low.
  • A daily close outside the range ends the strategy for that range, whether or not the stop was hit. Do not redraw the range wider to keep the trade.
  • Risk 0.5%. This is the book's weakest-evidenced page and it should carry the smallest size.

Take profit / exit

  • The middle of the range, for the first two thirds.
  • The opposite side for the rest, though it gets there less often than the chart suggests.
  • Time exit after fifteen days. A range trade that has not worked in three weeks is a range trade in a range that is ending.

Build Weekly Range Rotation

Reading this page is free and always will be. Taking it is what costs — the complete MQL5 for the rules above, yours to keep, permanently. Five of them cost $10 and they never expire.

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More from Swing

Daily Trend Pullbackbuy the dip inside a trend that already existsThree-Day Reversalthree closes the same way, then the turnDaily Breakout Retestlet the break go, buy the return

Trading carries risk and most retail accounts lose money. Nothing on this page is financial advice or a recommendation to trade. The chart is an illustration of the rules on constructed candles — it is not a record of a trade and not a backtest.