MONDAY RANGE TRADING STRATEGY (HIGH WIN RATE)

The Monday range is a useful tool for planning your trades for the week. It helps identify potential support and resistance levels, and can guide you in setting profit targets.

In this example, XAUUSD (gold) is currently trading within a tight range, as shown on the chart.

Scenarios to Consider:

1. Bullish Scenario:
- If the price breaks above the Monday High (2651) and holds above it as support, you can set your target profit (TP) at the previous week's high (2721).

2. Bearish Scenario:
- If the price breaks below the Monday Low (2621), consider setting your TP at the previous month's low (2536).

3. Range Trading:
- If the price is bouncing between these levels, play ping pong or wait for the market to decide its direction.

Execution Plan:

How do you know if the price has broken out and is holding the new level?

- On the 4-hour chart, look for a clean break of the range and see if the price holds above (or below) the level. If it does, this could be a good point to enter a trade.

- Alternative method: Zoom into the 1-minute chart, find a new range, and see if the price is rejecting a support or resistance level. You can then enter a trade but keep an eye on the price action, as market entries are rarely perfect.

- Risk management: Only risk 1/4 of your usual risk on this trade. This allows you to exit early if needed with less impact on your portfolio. Once you see confirmation, you can enter fully.

Important Advice:


- Trading strategies don’t always work perfectly every time. The key is to look for multiple factors (confluence) around key levels.

- The more confluence you find, the higher the probability of a successful trade.

This is how I approach Monday ranges. You can develop your own method around this concept.

Note: This strategy doesn’t guarantee you’ll catch every move, but it can help you understand the importance of ranges and guide you in identifying high-probability setups.