Asset: EUR/USD (1-hour chart)
Trade Execution:
If price closes a full candle outside the range by more than 0.25×R, the range is considered broken. At that point, the Square the Range system flips to a breakout avoidance mode: do not trade in the direction of the breakout until a retest fails. square the range trading system pdf
Once the range is defined, the trader calculates the "square" of that range.
The concept of "squaring" in trading originated with the legendary W.D. Gann. Gann believed that time was the most important factor in analyzing markets and that time intervals could be measured against price intervals to find equilibrium. Asset: EUR/USD (1-hour chart)
The "Square the Range" system focuses specifically on using a defined price range—usually a significant high and low—and projecting that range into the future using geometric calculations. The core premise is simple: Time balances Price.
If a market moves 100 points in price over 100 days, that range is considered "squared" or in balance. The system uses these calculations to project dates in the future where price is likely to react, regardless of current market sentiment or news. Trade Execution:
| Concept | Definition | | :--- | :--- | | The Range | A period where price oscillates between a clear Support (low) and Resistance (high) with no trend. | | The Square | The act of closing a trade (taking profit) to make your net position flat (zero). | | The Mean | The midpoint of the range. Often the primary profit target. |