Following on from yesterdays live training session on trading ranges, lets now take a look at the over night range and how to actually find the S/R levels.

On the chart below you can see GBPJPY 15 min chart from this morning session.  The red and blue arrow shows the last swing high and the last swing low to be made as price was trending up making higher highs and higher lows.

Price action then moved into the overnight session and made multiple swing highs and swing lows during the Asian session, but price was contained between these levels for the majority of the session with a brief pop out of the range about 3am (UK hours). In this case I can also use a little common sense and include that slight move high as a part of the overall range levels for my long and short trigger levels.

After this range has been identified all I do now is simply wait.

Answering my 3 basic questions I have found out where price is and what it is doing, and now I’m preparing myself for a trade. If price goes up, down or sideways I can formulate a trading plan.

• Up - Long break out
• Down - short break out
• Sideway - wait

as it turned out my long trigger level was hit and this meant I’m now looking for the first bar not to make a new bar high IE a pullback.

With my current trade management tactics I have already scaled out a portion of the trade to lock in some profits on the position, the remaining portions are a part of an overnight trade and an intraday trade which is still being managed with profits locked in on the trade.

This was a trade we discussed in real time in my trading room and in the interest of full disclosure it took two attempts to get in this trade… yes folks that right I took a small loss first before the winning trade eventually held. -25 pips to be exact. Ive nothing to hide from admitting my monetary losses and I do take them gracefully as the only person I would be fooling by trying to hide them is myself.

Current snap of this live trade.

As always open to questions. We Will be running through the price action reading in the next live training session next Wednesday so you can see in more detail how I came to select the levels I chose for my range above.

Enjoy

Phil