Definition
"Central Bank dealers range is a specific time of the day"
"if there's a range that we have deemed a specific important range in price once we determine that, that range height from high to low based on two different types of parameters which we'll go over, that measurement of price range in terms of Pips can be reproduced or replicated if you will in the form of a standard deviation"
Time Period
"the time period that frames the Central Bank dealers range is 2 P.M to 8 PM New York time"
"between 2 pm and 8 PM New York time regardless of where you live globally you need to find where your price charts indicate what would be seen as the candle that starts the 2PM and 8 PM times in New York time"
"like everything else I always teach find out what New York time is where you're at geographically and then find out what that looks like in your platform for your charts and delineate that with a vertical line with 2 pm New York and 8 PM New York"
Range Criteria
Ideal Range Size
"the ideal range is less than 40 Pips preferably the range should be no more than 20 to 30 Pips in total range high to low"
"between those two time windows the highest high and the lowest low ideally should be less than 40 Pips preferably 20 to 30 Pips total"
Range Too Large
"range is larger than 30 Pips can tend to be unfruitful for projections"
"this particular trading day we have to allow the market to do whatever it wants to do if we're going to scalp that's another thing but for day trading we can't use this criteria because it's too large of a central bank dealer's range"
Why 20-30 Pips is Ideal
"if the average daily range of the candle for the daily chart that you're trading is typically around 100 Pips a site now they're not always 100 Pips but I like to use as a ballpark figure general rule of thumb if we have a hundred Pips one third of that is around 33 Pips so that's why I give about 20 to 30 Pips ideal scenario uh it won't you want to be less than 40 Pips for that reason"
Standard Deviations
"one standard deviation above and below would be the same range added to the high the Central Bank dealer's range and one standard deviation is the same range that makes the Central Bank dealer's range and total range in terms of Pips and we subtract that range from the Central Bank dealer's range low and that would give us one standard deviation above it and one standard deviation below it"
"that range would be added to the high of the first standard deviation and subtract it from the low of the first standard deviation below giving us the second standard deviation and this would go one replicating that Central Bank dealer's range with standard deviations one two three and four"
Projection Rules
Sell Days (Bearish)
"typically most sell days will create the high of the day from the Central Bank dealers range up to three standard deviations"
"ideally sell dates create the high of a day no more than two standard deviations above the Central Bank dealers range many times just one standard deviation"
Buy Days (Bullish)
"most buy days will create the low of the day from the Central Bank dealers range down to the third standard deviation"
"ideal by days will create the low of the day no less than two standard deviations below the central thing deals range and ideally many times you'll see it just go one standard deviation below the Central Bank dealer's range creating the low of the day"
Four Standard Deviations
"four standard deviations above for a high today is going to be on the heels of a very high impact news event for the session in London"
"same thing is said on by days if it trades down to four standard deviations usually it's going to be very high impactful news or price can come down or go up to the fourth standard deviation to create a New York session Market reversal profile"
Bodies vs Wicks
"the range in Pips by calibration from high to low or using the wicks or alternatively we can use the range in the highest body and the lowest body as well whatever the highest closing or open price is and we have the lowest close or open is in between 8 pm and 2 pm New York time"
Preference for Bodies
"I will have to admit to you I like to use the bodies predominantly because the Wicks are always going to show erroneous price because of your dealing spread through your broker everyone's going to have a disparity between their high and their low on every candle it's never going to agree"
"so what I use is the bulk of the trading which is the body that in my opinion and there's no real Tennessee of y'all end-all answer for this but my uh studies over the last two decades is if we focus primarily on the bodies of the candles we're going to get more closer to what smart money is doing in relative terms than if we use just the Wix"
"now we can get a lot of feedback in terms of what retail is doing if we study Wix but if we study the bodies of the candles and we frame our ranges with that we'll get more clear pictures about what the institutional accumulation distribution ranges are going to be when we use the Central Bank deals range"
Important Note
"just because I like using the bodies and I think it's got the most Advantage we still have to look at the ranges with the Wicks included okay"
Main Purpose
"the Central Bank dealer's range strength is aiding in the low of the day or high of the day selection"
"that's the most important thing as a day trader we can focus on if we can look for the highest probable high or low of the data form"
"the Central Bank dealers range main focus is to help you find the high or low of the day in respective bullish repair stays"
When Low Forms (Bullish Days)
"in terms of when markets are bullish we're looking for the low of the data form predominantly in the London session so where is that low most likely going to occur and is it going to be on a day that's highly favorable for that event to unfold"
"if we're looking for one shot one kill in a bullish week we're going to be looking primarily for low of the day in London each day Tuesday Wednesday and Thursday preferably those days but it could occur on Monday as well"
Trading Context
Need for Directional Bias
"obviously we need to know directional bias for this to be any of any assistance to us so it has to be used in conjunction"
"we have to have a bias what do we think price is going to do is price going to go higher or lower over the next two or three days what's the price most likely going to do over the course of this present week or next week is going to go higher is it going to go lower"
Questions to Ask
"where are we at seasonally are we looking for bullish prices or lower prices"
"where are we at quarterly are we in a quarterly shift that is underway that's still unfolding with bullish prices with premium PD arrays that haven't been met yet"
Building the Picture
"if that's the case then we could be looking for scenarios to look for Buys so we're looking at discount PD arrays we're looking at reasons to suggest buying in a discount range so our PDA array Matrix is going to help us look for reasons to build ideas that are bullish"
"if we look for those ideas with the Central Bank dealers range in conjunction with those it'll help us narrow down with time of day London and open it'll help us frame ideal entry point"
Bearish Example
"so if we look at the daily chart and we see price trading up at a premium PD array and markets are bearish we're looking for lower prices for one shot one kill scenario looking for a lower close week we could be looking for one two or three standard deviations moved higher"
"when the Central Bank dealer trains is around 20 to 30 Pips ideally and if we get that projection up into London we have a great deal of advantage on our side that we're probably going to get the high of the day in the London session"
Confluence Factors
"now you add that also with your expectation of seasonal Tendencies all of those things start coming together and draw a closer picture to what institutional order flow is and how ipta moves price"
Not Every Day
"remember I said many times over the last seven years teaching Forex online that I don't trade every single day and even in this mentorship you've seen that it's not productive to try to trade every single trading day"
"but there are times we're going to learn that there are highest probabilities for a condition to be met for that higher load of form in London when we have these conditions we can go in with reasonable expectation that we have a good chance more than most days that the high or low will form in London and we can get a ballpark idea where that lower high should form"
Study & Review
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