Range analysis and acceptance
Define a range before the breakout, map uncertain cost zones and combine price acceptance with profiles, VWAP and session context.
What you will practise
Create a range study that another reader can reproduce without knowing the later outcome.
Before you start
- Complete the Open interest course, especially the limits of inferred cohorts.
- Understand invalidation, execution costs and price-based trade rules.
Course outline
- 1
Define a locked-in range as a hypothesis you can test
Fix range boundaries and an observation window, measure normalised OI growth and test a breakout without assuming that the same traders remain locked in.
8 min - 2
Map cost-adjusted break-even zones without inventing stops
Move from a hypothetical entry range to long and short break-even zones. Include fees and funding while preserving uncertainty about actual entries and exits.
8 min - 3
Define breakout acceptance before the breakout happens
Compare an excursion with sustained acceptance beyond a range. Write a close-and-retest rule, account for confirmation delay and keep failed signals in the sample.
8 min - 4
Calculate volume profile and VWAP from the same sample
Find the highest-volume price and the volume-weighted average, explain why they differ and avoid treating value area as a forecast or confidence interval.
8 min - 5
Choose timeframes and session context without moving the goalposts
Assign separate roles to context, setup and execution timeframes. Align UTC timestamps, daylight-saving changes, funding events and incomplete candles.
8 min
Educational material. Examples do not establish a profitable strategy. Trading costs, gaps and liquidation can produce losses beyond a planned stop.