Introduction
The first time I heard about this strategy, I thought it sounded too simple to work. Then I watched it play out on a chart again and again. It wasn’t flashy, didn’t rely on the latest indicator, and didn’t require constant screen time. But what it did do was something most traders only dream of: it gave me a clear, logical way to trade, with levels I could trust.
Here’s the thing about trading: most of us start out chasing. Chasing price. Chasing signals. Chasing strategies. The chaos of the market feels overwhelming, and it’s easy to get pulled in a hundred different directions. But what if there was a way to trade that removed all the noise?
This system does exactly that. It helps you identify the moments when the market is most likely to move and gives you a plan to trade those moves with precision and confidence.
Step-by-Step Guide to the Bank Range Strategy
Step 1: Identify the Bank Range
The first step is pinpointing the Bank Range a high and low price band that forms during a specific time period. This range reflects institutional positioning that drives future price movement.
The next part of this guide will show you exactly how to draw the Bank Range, use it to plan your trades, and set up precise entry and exit points.
How to Draw It:
Identify the dates of the last two Fed meetings.
Example: If the last meeting was December 18th and the prior one was November 7th, examine the high and low prices during that time.
Use a daily chart to draw a box encapsulating this range. This is your Bank Range, a visual guide for your upcoming trades.
Created with TradingView
Quick Insight: Historical data shows that price will typically break out above or below the range in the next six weeks, but rarely both.
Step 2: Apply the Modified Fibonacci Tool
Now, it’s time to prepare your entries using a customized Fibonacci retracement tool with these levels: 0%, 25%, 50%, 75%, and 100%.
For bullish setups, draw the retracement from the bottom of the range to the top.
For bearish setups, reverse the direction.
The Fibonacci levels act as stepping stones, allowing you to plan precise entry points as the market retraces toward the range boundaries.
Step 3: Entry Rules
The key to success in this strategy is buying/selling during retracements, not breakouts. Here’s how to do it:
But/Sell at the:
25% retracement level
50% retracement level
75% retracement level
Set your stop-loss below the 100% level of the Bank Range, with a small buffer to account for spreads or slippage.
Pro Tip: This approach ensures you’re entering on “red candles” (price dips) or ‘‘green candles’’ (price rips) instead of chasing momentum. It’s a disciplined way to capture value without overpaying.
Step 4: Managing Trades
Timing Your Entries: Focus on the first few weeks of the new six-week cycle for retracement entries. Avoid entering trades in the final week before the next Fed meeting.
Stop-Loss and Trailing Stops:
Place your initial stop-loss outside the Bank Range for maximum protection.
Once price breaks out, trail your stop to lock in profits as the trade moves in your favour.
Profit Targets:
In strong markets, breakouts often double the size of the previous range.
In slower conditions, target moves equal to 50% of the range size.
Created with TradingView
Step 5: Choose the Right Markets
This strategy applies across multiple markets stocks, forex, crypto, and commodities—but not all assets are equal. Focus on those that show clear direction or momentum during the current cycle.
Momentum Tip: Macro themes often dictate which assets outperform. Stay informed on global events to identify high-conviction opportunities.
Why Does This Strategy Work?
Markets are driven by institutional players who often establish positions during the six weeks between Fed meetings. The price boundaries they create become pivot points for future moves, leading to predictable breakouts.
By aligning your trades with these boundaries, you’re not chasing the market you’re anticipating its next move. The Bank Range Strategy simplifies this process, giving you a framework to follow the flow of institutional money.
Key Advantages of the Bank Range Strategy
Clear Entries: Fibonacci levels provide structured, objective entry points.
Reduced Risk: Stops are placed strategically, protecting you from unnecessary volatility.
Steady Discipline: Avoids emotional decisions by focusing on pre-set levels and retracements.
Repeatable Success: Works consistently across markets due to its foundation in institutional behavior.
How to Determine Market Direction
The one subjective element of this strategy is predicting whether the market will break higher or lower. This requires analysing:
Fundamental Drivers: Economic data, Fed policy, and market sentiment.
Positioning: Insights into institutional flows can offer clues.
Exclusive Opportunity: For directional analysis and high-conviction trade ideas, consider upgrading to Speculators Edge With detailed insights tailored to the upcoming cycle, you’ll always have an edge.
Final Thoughts
The Bank Range Strategy is a powerful way to approach swing trading with logic and precision. By focusing on retracement entries, safe stops, and calculated breakouts, you can navigate the markets without the stress of impulsive decisions.
The next six-week cycle starts soon. Take this strategy, apply it to your charts, and let the market come to you.
Here’s to trading with clarity, discipline, and success.
Nice and simple strategy, Miad.
Higher timeframes rule!
Great stuff!