Structure
Optimal Trade Entries
Draws the dealing range, splits it at equilibrium, and highlights the 61.8 to 78.6 retracement on the side structure supports.
The dealing range spans the most recent significant high and low. Divide it in half and equilibrium appears: above that midpoint price is expensive relative to the range, below it price is cheap. Cheap and expensive here are measured against the range itself rather than against an opinion.
Inside that range, the 61.8 to 78.6 percent retracement marks the area where a pullback is deep enough to be worth taking yet not so deep that the move has failed. Both boundaries are adjustable. Premium and discount shading, the equilibrium line and the quarter levels can each be shown or hidden.
When structure shifts the range redraws around the new swings, which is the intended behaviour rather than a flaw. A range built on stale swings describes a market that no longer exists.
How to read it
- Treat the zone as a place to look for a trigger, not as a trigger by itself.
- A minimum range size filter stops tiny ranges producing zones that mean nothing.
- Extend the zones forward if you are waiting for price to reach them over several sessions.
Questions
Why 61.8 and 78.6?
They are the retracement levels this method uses by convention. Both are inputs, so other levels work equally well.
How is the dealing range chosen?
From swing highs and lows found with the pivot lengths you set, subject to the minimum range size.
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