Expected Range Boxes

#1

If the boxes form over 60 minutes, and then form the next box, why are some of succeeding boxes horizontally

#2

I’m not sure what your question is…

If you are referring to the varying height of the expected range boxes, that is meant to show you the implied volatility for that 60 minute period with a preview for the next 60 minute period (periods can be adjusted to whatever range you desire 60 Min, 120 MIn, etc). The higher the implied volatility for a given period the taller the range box will appear. The horizontal width of the box is determined by the number of bars formed in that period. If you are using time based bars that number will remain constant (i.e. 5 min bars = 12 bars in each 60 min expected range box). Non time based bars such as diagnostic, Continuum and Shadow bars will have a varying number of bars dependant on the price movement in that given period. Non time based bars will also overlap between ranges (with the exception of the continuum bars which have a combination of price and time movement) as the bars have to move a certain number of ticks before a new bar is formed.

#3

I appreciate your responses to the multiple question I submitted yesterday. They fill in the gaps in the gaps as I’m learning to trade spreads. Really like this trading strategy,although trading it in flat markets is really tough. Fortunately, its demo $.

#4

I’m happy to help. I remember when I first started it was someone taking the time to answer my questions that made all the difference. This is a community of traders helping traders so please continue to ask away. :smile:

Are you trading binaries, spreads or futures? There is a strategy that can be used in flat markets as well.

Peter

#5

Thanks for the offer. I started trading binaries, but quickly saw the light and switched over to spread. I’m trading IZpone Sharpshooter for now pending more experience before picking up binaries again. Spreads are a good match for my top priority which is risk management. My professional back for many yeara was credit risk management in the banking and finance world. So, I have a healthy respect for the risk side of trading. I’m looking at it as the start of second career because retirement “ain’t what it’s cracked up to be” for about a dozen reasons.

My understanding is that a scalping strategy works in flat markets. Watched DM’s video on the subject. But finding good execution is difficult. I need to get into the trading room. Did you do that when you first started.

#6

I actually started out with binaries and was using the boomerang system. Then I started trading Iron Butterflies and when I had a sufficient understanding of the spreads I was doing Iron Condors. I also traded the 20 minute binaries when I had the opportunity. Once I opened my futures account I was trading futures and spreads almost exclusively.

Right now I’m working on building my account to the point where I can say goodbye to the whole day job gig and move on to trading full time. It’s a balancing act but I’m finding success with it. The best way to train your eye to look for good setups in any market is to look at the end of every day look at a chart and identify all of the trades you would have taken. Mark up the chart with entry points and where you would exit. Do this every day whether you trade or don’t and you will be able to see them much clearer.

#7

Good advice. Sounds like your making good progress toward your goal. Hope it continues to go well. Once again, thank you for your generosity with your time and willingness to to help me out.

#8

The markets are having deviation moves they may not be super fast but they are not flat.