Building a Trading Range for the Week
Using Darvas Boxes + Wyckof Distribution / Accumulation + Harmonics
Hello satoshi snipers!
The day has started off right with a very well-packed bag! Nearly $4k in profits! Let’s go!
Here we have another “how-to” on how you might use a combination of workflows and tools to build-out a trading range for the week! Imagine planning your trades days in advance? It’s totally possible and I’ll show you how I do this here.
I like to day trade, as you know, and so the result is constantly shifting work as the price action and sentiment around the price changes throughout the day.
I don’t really care if it’s going up or down; I just care about the delta between points and if I can snag a trade in-between those two points for profit. But, it is important to understand the larger time frames and how things are not only shaping up but also how you might attack a week’s worth of trades, assuming she respects those levels and doesn’t entirely breakout (to the upside or downside).
Which, is what she’s going to do… soon-ish I think.
I’ve shared how I setup my trades previously but I also wanted to show what I do to get an idea of for the week. Here’s the breakdown of what I’m doing:
I’m establishing a trading range by using Darvas Boxes to “block in” local tops and local bottoms; these act as support and resistance for price and, as you can see, she’s been bouncing up and down, up and down. A trader’s dream, if you can stomach it!
I’m using Wyckoff Distribution / Accumulation (learn more via Trading Library) to get a sense of where it might head and how it might test those supports / resistances. If we’re in accumulation then we’ll range here until we launch upwards, breaking the local top and starting to form “Signs of Strength” and create “Last Points of Supply” / “Backup Supply” before lift-off. This looks like a “Cup and Handle” usually.
I then find any available harmonics in the larger time frame; in this video I’m using 4 hours to block off this trade range and is as long as I usually go as I really never hold anything for more than a week, if ever. But, on occasion I will try to add some “long hodls” on patterns that I think have a lot of confluence and a lot of potential. But, these are very risky for a day trader and I have not always been right (and paid for those lessons). I found a gartley that shows downside action but that could see a wicked bounce. This might be a good entry point for a (swing) long or a nice, quick scalp for a few powerful points up.
I use Fibonacci Retracement first to get a sense of range and then, since I found a harmonic that ends south of the current price, I use Trend-Based Fibonacci Tool from “swing high” (or local high) to “swing low” (or local low) to get my levels to the downside. Then, I can begin to plot a course.
After this it’s up to you! Now you could do the “day trade” setup and add orders at the tops and bottoms of the range with stops to protect you if she blows through and you can be very happy with some of the $300-500 point moves, with big bags.
Trading the Range™️ is something that I particularly like because you can make a lot of money by just having her fail breakouts and range inside a large Darvas Box.
Especially this week as this is all she’s been doing and, as I mentioned above, she’s building and compressing down and I’d expect that we’re going to see a big “pop” in one direction soon or after even more accumulation by big money and market makers; I have no idea where she’ll head in the next week but if I had to guess I’d put my money on down.
Find your range and then prepare your trades for the week! It’s not hard and once you get this down you can start moving in and out of positions with a bit more confidence since you’ve been thinking and planning for these “pivots” days in-advance.
In either case I’ll be trading her, up down, side to side; good luck on your hunts! Talk soon and let me know if you need any help working these ranges.
To infinity & bitcoin,
Building a Trading Range for the Week