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

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."

Following on from the Fibonacci basics article we can now start to use a structured approach to identify and trade with Fib levels.

Trading Fib levels is pretty much the same as trading a pullback but you are using fib levels to determine where and when you you will get into a trade and place your stop loss level as well as identify your target levels.

Range Break Outs form the basis of my core trading. Generally speaking I call most consolidation patterns a range whether it is a triangle in one of its many guise's, a head and shoulder pattern, and so on. The point is to identify a period on the chart when price is contracting which then should lead to a period of expansion.

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.