🔹 1. What is a Range?
A range is when price moves sideways between:
Resistance (top line)
Support (bottom line)
In the image:
Price is moving inside a box → this is the range
Market is not trending, just consolidating
🔹 2. Size of the Range
The height between support and resistance = range size
This is important because: 👉 It helps you calculate your target
🔹 3. Volume Behavior
Inside the range → Low Volume
At breakout → High Volume
👉 This is VERY important
A real breakout usually comes with strong volume increase
🔹 4. Breakout Entry (Buy Setup)
You enter a trade when:
✅ Price breaks above resistance
✅ Strong bullish candle
✅ Volume increases
📍 Entry point (Buy):
After breakout candle closes
Or on a small pullback (safer)
🔹 5. Stop Loss
Place stop loss below the breakout level
Or below the last support
👉 This protects you if breakout fails (fakeout)
🔹 6. Target (Take Profit)
Minimum target = Size of the range
Example:
Range height = 50 pips
Breakout happens → target = +50 pips
This is shown as “MIN. TARGET” in the image.
🔹 7. Trend Continuation
After breakout:
Price usually starts a strong uptrend
You can trail your stop loss and ride the move
🔹 8. When to Avoid
❌ Low volume breakout
❌ Fake breakout (price quickly returns inside range)
❌ News time volatility
🔥 Simple Strategy Summary
Identify range
Wait for breakout
Confirm with volume
Enter trade
Set stop loss below
Target = range size