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Trading ranges may be found between a
resistance and a support on any time compression.
Some traders may even consider trading ranges as small as a
one-minute time compression if they are scalpers. Trading ranges
have been considered as stabilized areas of the market;
recently, however, more and more traders are beginning to
realize that trading ranges shift as market conditions change.
Extreme levels in the markets actually identify the larger
ranges as they shift, and I have heard bank traders refer to the
cause of these trading range shifts as “floating Fibonacci.”
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Traditionally, a range is identified as
having lower lows and lower highs if in a bearish market or
higher lows and higher highs if in a bull market. Trading ranges
must be considered in all time compressions when trading, and to
take advantage of the market, you need to open-mindedly
understand the value of the S90/Crossovers as well as the
extreme ranges in the markets.
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