Framework
Framework
Lesson 2 : Weekly Range
Lesson 2 : Weekly Range
Lesson 2 : Weekly Range
Beginner
Beginner
Beginner
8 min
8 min
8 min
Why Monday is Avoided
Why Monday is Avoided
Why Monday is Avoided
While price levels to the left are used to frame the current market, each week is viewed as independent from the last. The development of the weekly range is paired with the logic of relevant swings to guide decision-making.
While price levels to the left are used to frame the current market, each week is viewed as independent from the last. The development of the weekly range is paired with the logic of relevant swings to guide decision-making.
While price levels to the left are used to frame the current market, each week is viewed as independent from the last. The development of the weekly range is paired with the logic of relevant swings to guide decision-making.
The first step in applying the weekly range is to avoid trading on Monday. Monday’s price action is used only to provide context for how Tuesday should trade in relation to the relevant swings. There are two primary scenarios when entering a new week.
The first step in applying the weekly range is to avoid trading on Monday. Monday’s price action is used only to provide context for how Tuesday should trade in relation to the relevant swings. There are two primary scenarios when entering a new week.
The first step in applying the weekly range is to avoid trading on Monday. Monday’s price action is used only to provide context for how Tuesday should trade in relation to the relevant swings. There are two primary scenarios when entering a new week.
The previous week closed with an established reversal. In this case, Monday should act as confirmation by respecting the point of reversal, and the continuation is traded starting on Tuesday.
The previous week closed with an established reversal. In this case, Monday should act as confirmation by respecting the point of reversal, and the continuation is traded starting on Tuesday.
The previous week closed with an established reversal. In this case, Monday should act as confirmation by respecting the point of reversal, and the continuation is traded starting on Tuesday.
The new week opens without a prior engagement of a relevant swing. In this case, relevant swings to the left are noted for Monday to potentially engage, which builds the context for how Tuesday should trade.
The new week opens without a prior engagement of a relevant swing. In this case, relevant swings to the left are noted for Monday to potentially engage, which builds the context for how Tuesday should trade.
The new week opens without a prior engagement of a relevant swing. In this case, relevant swings to the left are noted for Monday to potentially engage, which builds the context for how Tuesday should trade.
There are also additional reasons for avoiding Monday. It consistently has the lowest average daily range of the week and never carries major news events. Passing on Monday eliminates a day that lacks proper context and has a reduced chance of producing a sustained expansion move.
There are also additional reasons for avoiding Monday. It consistently has the lowest average daily range of the week and never carries major news events. Passing on Monday eliminates a day that lacks proper context and has a reduced chance of producing a sustained expansion move.
There are also additional reasons for avoiding Monday. It consistently has the lowest average daily range of the week and never carries major news events. Passing on Monday eliminates a day that lacks proper context and has a reduced chance of producing a sustained expansion move.
Expansion Rule Introduction
Expansion Rule Introduction
Expansion Rule Introduction
There is one rule on the daily timeframe that is crucial for navigating bias and framework. After three consecutive expansion candles in the same direction within a week, the expectation is that the trend will either pause or reverse. This is defined as the expansion rule.
There is one rule on the daily timeframe that is crucial for navigating bias and framework. After three consecutive expansion candles in the same direction within a week, the expectation is that the trend will either pause or reverse. This is defined as the expansion rule.
There is one rule on the daily timeframe that is crucial for navigating bias and framework. After three consecutive expansion candles in the same direction within a week, the expectation is that the trend will either pause or reverse. This is defined as the expansion rule.
Valid Expansion Rule
Valid Expansion Rule
Valid Expansion Rule
The expansion rule is not defined only by consecutive daily closes in the same direction. It also depends on how each daily candle trades and closes. For the rule to be valid, all three consecutive daily candles must qualify as expansions. Each candle in the series should display two simple signatures:
The expansion rule is not defined only by consecutive daily closes in the same direction. It also depends on how each daily candle trades and closes. For the rule to be valid, all three consecutive daily candles must qualify as expansions. Each candle in the series should display two simple signatures:
The expansion rule is not defined only by consecutive daily closes in the same direction. It also depends on how each daily candle trades and closes. For the rule to be valid, all three consecutive daily candles must qualify as expansions. Each candle in the series should display two simple signatures:
A larger than average range compared to recent candles.
A larger than average range compared to recent candles.
A larger than average range compared to recent candles.
A bulky candle body that reflects a sustained trend within the candle.
A bulky candle body that reflects a sustained trend within the candle.
A bulky candle body that reflects a sustained trend within the candle.
This does not need to be overly complicated or exact. It is a visual cue that makes the rule practical in application. The following image displays a valid expansion rule compared with a false expansion rule to illustrate the idea.
This does not need to be overly complicated or exact. It is a visual cue that makes the rule practical in application. The following image displays a valid expansion rule compared with a false expansion rule to illustrate the idea.
This does not need to be overly complicated or exact. It is a visual cue that makes the rule practical in application. The following image displays a valid expansion rule compared with a false expansion rule to illustrate the idea.
Applying Confluence
Applying Confluence
Applying Confluence
What does this mean in practice? The expansion rule establishes clear boundaries for the direction being traded, while also serving as a layer of confluence with certain market frameworks.
What does this mean in practice? The expansion rule establishes clear boundaries for the direction being traded, while also serving as a layer of confluence with certain market frameworks.
What does this mean in practice? The expansion rule establishes clear boundaries for the direction being traded, while also serving as a layer of confluence with certain market frameworks.
In the first scenario, if continuation moves have been traded across the previous days, but the next day would mark the fourth consecutive expansion within the same week, continuations are no longer taken. The expectation is that the trend will pause, regardless of what is shown on the left side of the chart.
In the first scenario, if continuation moves have been traded across the previous days, but the next day would mark the fourth consecutive expansion within the same week, continuations are no longer taken. The expectation is that the trend will pause, regardless of what is shown on the left side of the chart.
In the first scenario, if continuation moves have been traded across the previous days, but the next day would mark the fourth consecutive expansion within the same week, continuations are no longer taken. The expectation is that the trend will pause, regardless of what is shown on the left side of the chart.
In the second scenario, if price reaches near or into a relevant swing on the third consecutive expansion day within the same week, there is confluence to expect a reversal from that level. This creates an additional narrative for the engagement of a relevant swing and establishes a fully one-sided bias.
In the second scenario, if price reaches near or into a relevant swing on the third consecutive expansion day within the same week, there is confluence to expect a reversal from that level. This creates an additional narrative for the engagement of a relevant swing and establishes a fully one-sided bias.
In the second scenario, if price reaches near or into a relevant swing on the third consecutive expansion day within the same week, there is confluence to expect a reversal from that level. This creates an additional narrative for the engagement of a relevant swing and establishes a fully one-sided bias.
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2025 The Market Lens - All Rights Reserved
The standard for trading education and guidance
2025 The Market Lens - All Rights Reserved
The standard for trading education and guidance