Trading range morning

The example below provides a 30 pip trading range (TR) before significant news at 9.30am.

The close of bar 1 gives us our first opportunity short. At this stage, we are not sure of a trend or TR therefore as there is doubt we take the scalp. On reaching the scalp target, we have three pushes down and hence probably a reversal to establish the TR.

The fourth entry at the close of bar 4 did not reach the target. We exited on-market in this instance at the close of the third bull bar after entry. Bar 5 short was interesting. An excellent signal and as the bar was small, we took the measurement, unusually, from top to bottom including the wick.

However, the institutions also liked this signal as the price, although showing a small PB, raced down and we did not get our entry.

Yellow arrows indicate entries and red arrows exits.

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