Day Trading Mentorship: LEVEL 2.42 RANGE TRENDS FULL CIRCLE

Dec 1, 2024

Lecture on Range Trends and Timeframes

Key Concepts

  • Range Identification: Determine the bottom move, knife catch, and greediest level to define the range.
  • Time Frames: Utilize specific timeframes - daily, hourly, 15-minute, 5-minute, 3-minute, 1-minute, and avoid using others.
  • Plus One, Minus One Theory: Adapt trends by moving up or down one timeframe.

Timeframe Strategy

  • Hourly Levels: Starting with an hourly level (e.g., 9.13 blue on screen), identify the next levels (e.g., 8.37 for 15 minutes).
  • Combo Range: Define and pick levels it could go to (e.g., from 9.13 to 8.37).

Creating Trends

  • Interior Trends: Develop interior trends when there are level reversals or trailings.
  • Five-Minute Interior Trend: If a 15-minute level is tested, create a five-minute interior trend until a larger timeframe is developed.
  • Filling the Gaps: Plus one, minus one theory fills in gaps, ensuring trends don’t skip essential levels.

Example Explanation

  • Testing and Holding Levels: If a 15-minute level is tested, a five-minute range trend should be created.
  • 15-Minute Range Trend: When a five-minute trend is confirmed, adapt to a 15-minute trend.
  • Hourly and 15-Minute Adaptation: If a trend is confirmed on the 5-minute, move up to check the 15-minute levels for adaptation.

Full Range Trend Cycle

  • Cycle Completion: Range trends complete a full circle by testing and confirming trends across timeframes.
  • Distribution and Accumulation: The science behind distribution includes creating and holding weekly levels with daily trends.

Practical Application

  • Real-Time Chart Adaptation: When trends are confirmed at a smaller timeframe, adapt the range to higher timeframes for holding the entire move.
  • Example from Charts: Testing on five-minute and adapting to 15-minute or hourly trends as time progresses.

Importance of Timeframes

  • Avoid Skipping Levels: Proper testing and adaptation prevent skipping important levels.
  • Full Circle Explanation: Explains how plus one, minus one theory ensures all parts of the move are covered and understood.

This lecture provides a comprehensive understanding of how to define, adapt, and apply range trends using specific timeframes, ensuring effective trading strategies.