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    Trade The Range Strategy: by Adam Khoo

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    sesilya 14
    This document outlines a swing trading strategy called "Trade the Range" that targets stocks moving within clearly defined support and resistance levels. The strategy involves: 1) Buying stocks bouncing off support and selling at resistance for potential 2-4R gains. 2) Shorting stocks bouncing off resistance and covering at support also for 2-4R gains. 3) Entries use buy/sell stop limits placed above bullish candles at support or below bearish candles at resistance. 4) Risk is managed with tight stops below support or above resistance.

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    Trade The Range Strategy: by Adam Khoo

    Uploaded by

    sesilya 14
    166 views13 pages
    This document outlines a swing trading strategy called "Trade the Range" that targets stocks moving within clearly defined support and resistance levels. The strategy involves: 1) Buying stocks bouncing off support and selling at resistance for potential 2-4R gains. 2) Shorting stocks bouncing off resistance and covering at support also for 2-4R gains. 3) Entries use buy/sell stop limits placed above bullish candles at support or below bearish candles at resistance. 4) Risk is managed with tight stops below support or above resistance.

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    This document outlines a swing trading strategy called "Trade the Range" that targets stocks moving within clearly defined support and resistance levels. The strategy involves: 1) Buying stocks bouncing off support and selling at resistance for potential 2-4R gains. 2) Shorting stocks bouncing off resistance and covering at support also for 2-4R gains. 3) Entries use buy/sell stop limits placed above bullish candles at support or below bearish candles at resistance. 4) Risk is managed with tight stops below support or above resistance.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    166 views13 pages

    Trade The Range Strategy: by Adam Khoo

    Uploaded by

    sesilya 14
    This document outlines a swing trading strategy called "Trade the Range" that targets stocks moving within clearly defined support and resistance levels. The strategy involves: 1) Buying stocks bouncing off support and selling at resistance for potential 2-4R gains. 2) Shorting stocks bouncing off resistance and covering at support also for 2-4R gains. 3) Entries use buy/sell stop limits placed above bullish candles at support or below bearish candles at resistance. 4) Risk is managed with tight stops below support or above resistance.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 13

    Trade The Range Strategy

    SELL

    BUY

    By Adam Khoo
    Trade The Range Strategy
    • A short term swing trading strategy for stocks in a clear defined ‘Range Channel’.
    • We buy stocks when they are bouncing off a strong level of support within the
    Range Channel… Target is the resistance of the range
    • We short stocks that are bouncing off a strong level of resistance within the Range
    channel… Target is the support of the range
    • Average Win rate 50%-70%, Average R Win of 2R-4R

    SELL

    BUY
    Trade The Range Strategy
    Setup Rules for Long Trade
    • Clearly defined resistance (tested 3 times) and clearly defined support (tested 3 times)
    that create a ‘Channel’
    • No additional support or resistance levels within the channel
    • Bullish candle or bullish pin bar appears at the support level

    Test 1 Test 2 Test 3

    Bullish Candle

    Test 1 Test 2 Test 3


    Trade The Range Strategy
    Setup Rules for Long Trade
    • Highest Probability Trade Occurs when…
    • Lower Bollinger Band Recently Penetrated

    Test 1 Test 2 Test 3

    Test 2 Test 3
    Test 1
    Trade The Range Strategy
    • Entry Rule
    • Place a Buy Stop Limit order a few cents above the high of the Bullish Candle (or Bullish Pin
    bar) at the support level
    • Stop Loss Placement
    • Stop loss is placed a few cents below the lowest Low of the channel. If the current low is the
    lowest low of the channel, ensure that the stop loss is at least 1ATR below the support.
    • Profit Target is at the Resistance of the Channel
    • Risk to reward ratio of at least 1:2

    Take Profit $25.65


    $2.14 = 2.67R

    $23.51 $23.59
    Lowest point of Buy Stop Limit
    channel 1R = $0.80
    Stop Loss $22.71
    STLD TTR Long Setup

    Take Profit $35.58

    $4.06 = 3R

    $31.52 $31.65
    Buy Stop Limit

    1R = $1.33
    Stop Loss $30.19
    Lowest low of range
    REGL TTR Long Setup

    Take Profit $52.65

    $2.09 = 3.4R

    $50.56 $50.62
    Buy Stop Limit
    1R = $0.61

    Stop Loss $49.95

    Lowest low of range


    IYR TTR Long Setup

    Take Profit $82.74

    $2.93 = 2.67R

    $79.81 $79.92
    Buy Stop Limit
    1R = $1.10
    Stop Loss $78.71
    Trade The Range Strategy
    Setup Rules for Short Trade
    • Clearly defined resistance (tested 3 times) and clearly defined support (tested 3 times)
    that create a ‘Channel’
    • No additional support or resistance levels within the channel
    • Bearish candle or Bearish pin bar appears at the Resistance level

    Bearish Candle

    Test 1 Test 2 Test 3

    Test 1 Test 2 Test 3


    Trade The Range Strategy
    Setup Rules for Long Trade
    • Highest Probability Trade Occurs when…
    • Upper Bollinger Band Recently Penetrated

    Test 1 Test 2 Test 3

    Test 1 Test 2 Test 3


    Trade The Range Strategy
    • Entry Rule
    • Place a Sell Stop Limit order a few cents below the low of the Bearish Candle (or Bearish Pin
    bar) at the resistance level
    • Stop Loss Placement
    • Stop loss is placed a few cents above the high of the channel. If the current High is the
    highest high of the channel, then ensure the stop loss is at least 1ATR above the resistance
    • Profit Target is at the Support of the Channel
    • Risk to reward ratio of at least 1:2
    Highest point
    of channel

    Stop Loss $18.92


    1R = $0.63
    Sell Stop Limit
    $18.29$18.23

    $2.78 = 4.4R

    Take Profit $16.14


    Screening for TTR Trades
    Trade The Range Strategy

    SELL

    BUY

    By Adam Khoo

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