The "Square the Range" system is rooted in the theories of W.D. Gann. The central premise is that price and time are geometrically related. "Squaring the range" refers to a situation where the price movement of a specific timeframe (the Range) mathematically aligns with the time duration of that timeframe.
In simpler terms, the system uses the previous trading period's range (High minus Low) to predict future support, resistance, and trend reversal points. square the range trading system pdf
You enter trades only at the edges (20% zone near the bands). There are three signal types: The "Square the Range" system is rooted in the theories of W
| Signal Type | Condition | Action | | :--- | :--- | :--- | | Classic Reversal | Price touches Upper Band + RSI < 70 | Short at market | | False Breakout | Price closes 0.2% above Upper Band, then closes back inside in the next bar | Short at the close of the false breakout bar | | Squaring Candle | A wide-range candle that opens at Mid-line and closes near the opposite band | Enter immediately at the close | "Squaring the range" refers to a situation where
Version 1.0 A Mean-Reversion Strategy for Range-Bound Markets