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1.3 Range Structure

range structure smc

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424 views15 pages

1.3 Range Structure

range structure smc

Uploaded by

David Morin
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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STBP WEEK 1

Lesson 1.3 - Range Structure

@CASPER_SMC
@ETHAN_ICT
INTRODUCTION
Range Structure

WHAT IT IS
Range structure is the current
defining range of the higher time
BULLISH RANGE frame. This helps us understand if
price is trading at a premium,
discount, or fair market value.

SIGNIFICANCE
The significance of range
structure is that it gives us the big
picture and overall where the
market is headed long-term.
When intraday trading, even in a
bearish range, there will still be
buy days (vice versa). Range
structure is utilized to identify
BEARISH RANGE the current state of the market.

APPLICATION
The greatest application of this
concept is to only look for market
structure shifts coupled with
displacement on the LTF when
looking for ‘reversals’ in the
market. This will help identify
high probability moves. Range
structure may also be utilized to
identify the state of how IPDA is
currently operating, such as
Consolidation, Retracement,
Expansion, or Reversal.
STATE OF THE MARKET
Range Structure

CONSOLIDATION
Consolidation is likely to occur when the market trades into equilibrium
or an important HTF price level. This is when we want to wait for clear
displacement and for Smart Money to show their hand.

Generally we do not want to trade consolidation as this is low probability,


although, scalping is still viable within the consolidation range itself as time
is fractal.

Time of day also plays a factor in this but is covered in a later lesson.
STATE OF THE MARKET
Range Structure

RETRACEMENT
Retracement is a movement down into discount of a bullish range or a
movement up into premium of a bearish range.

As Smart Traders, we seek out retracement after an external level has


been traded into.

When we identify a retracement occurring, as intraday traders we can use


internal range to counter trend trade even though the overall expectation
for the market is in the opposite direction.
STATE OF THE MARKET
Range Structure

EXPANSION
Expansion is a continuation in the market pro-trend into the external
range high/low (continuation in the HTF bias).

This occurs when a retracement/consolidation (price has traded into fair


market value) is complete and big players in the market are ready to make
the next move.

As Smart Traders, THIS is the move we want to be involved with. It will


be the most satisfying trades of trading careers as the trade will most often
trade straight to Take-Profit.
EXAMPLES
Range Structure

CONSOLIDATION [HTF CHART]

CONSOLIDATION [LTF CHART]


EXAMPLES
Range Structure

RETRACEMENT [HTF CHART]

RETRACEMENT [LTF CHART]


EXAMPLES
Range Structure

EXPANSION [HTF CHART]

EXPANSION [LTF CHART]


APPLICATION
Range Structure

HOMEWORK 1
Annotate all range structure in the given chart.
APPLICATION
Range Structure

HOMEWORK 2
Annotate all range structure in the given chart.
APPLICATION
Range Structure

HOMEWORK 3
In the blank space below, draw a diagram of when the market is
consolidating.

(Answer is in the PDF Content)


APPLICATION
Range Structure

HOMEWORK 4
In the blank space below, draw a diagram of when the market is retracing.

(Answer is in the PDF Content)


APPLICATION
Range Structure

HOMEWORK 5
In the blank space below, draw a diagram of when the market is expanding.

(Answer is in the PDF Content)


ANSWERS
Range Structure

HOMEWORK 1 ANSWERS
Annotate all range structure in the given chart.
ANSWERS
Range Structure

HOMEWORK 2 ANSWERS
Annotate all range structure in the given chart.

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