This trading system includes:
Indicator: Market Profile Flexible
Bar type: KingRenko$ 8/4
Helper tool: Risk/Reward Meter (to estimate reward/risk)
First, you identify the sideways region.
Second, you use our Market Profile Flexible indicator to draw a profile of the sideways region.
Third, you extend the POC line of the profile to the right.
Fourth, you wait for the market to return to the POC line and form a reversal candle at the POC level.
Fifth, you place a pending entry (limit order) right at the POC price, with the stop beyond the sideways region’s extreme price (i.e. above the sideways region’s highest price if you are going to sell, or below the sideways region’s lowest price if you are going to buy). The target should be set at the price that forms a reward/risk ratio of 1:1, 2:1 or even higher – depending on the context.