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WITHIN RANGES
As the saying goes, “the market can only move up, down or
sideways”. Obviously, when the market is trending then it is predominantly
moving either up or down. As discussed earlier in this eBook, to say a market
is moving “sideways” isn’t really true because what it is really doing is
moving up, back down, back up, back down, etc. – oscillating within a
“range”. Recognizing that the market is confined within such a range presents
the opportunity to trade within it, especially as a scalper.
“Within Ranges” is a scalping opportunity that can happen in virtually all time
frames, but for the purpose of scalping you’ll usually be looking for them on
your hourly charts, but you can also find them on your 5 minute charts, and
even on your daily charts.
The patterns that create the ranges you’ll want to trade within include:
• Sideways Consolidations
• Sloping Consolidations
• Triangles
• Flags
While you see such patterns you use the following methods to trade within the
pattern, but be watchful for when the market breaks out of the pattern. Once it
eventually does break out then you simply change your trading strategy from
“Within Ranges” to “Pattern Breakout” methodologies.

Look at the above diagrams of the patterns. As you can see, once you can
define the containment area (the space contained by the trendlines) then you
can attempt to trade within that range. As long as the pattern holds you can
keep profiting by trading the small up and down trends. Once it breaks out
then change your approach to a “breakout” strategy.
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