by fytte

Drawing out ranges and using added levels to anticipate where our rejections or deviations will reverse.

Rejections = Only wick

Deviation = More time spent away of range, false breakout

YMMV. Backtest this yourself.

The strategy can also be used in the more traditional way of plotting ranges.

Wick to wick for leg of expansion that began the consolidation.

Here the 1.25 and -0.25 would be used for deviations because of how wide the range is.

Examples