This strategy is a quick and easy way to trade currency pairs without having to screen watch from morning ‘til night.

This strategy was developed a few years ago now and was recently revived due to the very volatile market conditions as a result of the financial melt down.

Previously we looked at the range break out and we considered the following as a consideration of when to trade which pattern, "the move into the range dictate the most likely direction of the break out move, 65% of the time it is a continuation pattern 35% of the time it is a reversal pattern."

As the saying goes there are many ways to skin a cat, in terms of a range it is usually it is pretty simple to "see" a range and I believe people get a little hung up on this point.

I will start by Identifying two types of range. 

• Intraday Range
• Longer Term Ranges

The intraday or more specifically the range I look for which develops with a high degree of probability is in the overnight or Asian trading session.

I will usually idententity these overnight ranges on the 15 minute or 60 minute charts.