AZG-XAU-002
Range-Bound Fade
Counter-trend strategy for ranging Gold markets. Fade extremes when ADX confirms low volatility and price respects established range boundaries.
Market Conditions
Primary Condition: ADX < 25 on H4 (no clear trend)
Secondary: Price oscillating between established S/R on 1D/H4
Range Confirmation: At least 2 touches of both upper and lower boundaries
Entry Criteria
Layer 1: 1D Context
Mark clear S/R levels that have been tested multiple times. Confirm ranging structure (no new highs/lows breaking previous structure).
Layer 2: H4 Trend Engine
ADX < 25 confirms range environment. +DI and -DI frequently crossing indicates chop.
Layer 3: Range Extremes
Enter shorts at upper range boundary. Enter longs at lower range boundary. Don't chase mid-range.
Layer 4: H1 Trigger
Wait for rejection candle at range boundary: pin bar against boundary, engulfing rejection, or shooting star/hammer pattern.
Invalidation Rules
• Stop loss: Beyond range boundary (outside the established structure)
• ADX spikes above 30 during position = breakout starting, exit immediately
• Daily close outside range = structure broken, range strategy invalid
Session Filter
Preferred: Asian session (00:00-08:00 UTC) — ranges often hold
Caution: London open — breakout risk increases
Avoid: London-NY overlap — highest breakout probability, don't fade
Position Sizing
CANDIDATE phase: 0.5% risk per trade (paper trading / demo)
ACTIVE phase: 1% risk per trade (live with small capital)
Note: Range strategies typically have higher WR but lower RR. Target WR > 60% is critical.
Tracking
Trades logged: 0
Wins: 0 | Losses: 0
Win Rate (WR): —%
Risk:Reward (RR): —
Status: Awaiting first backtest results