The Core Principles of Area Method - Practice Edition | Episode 6: How to Narrow the Range of Area Width to the Acceptable Range [FX Planner]

In the previous issue, we learned a method of entering by pulling the price toward the entry when the width of the area exceeds the allowable range. This time, we will examine a different approach that makes easier entries possible: “narrowing the area to your own tolerance.”

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Narrowing from long-term to short-term timeframes

In the previous issue, we said that when the area width exceeds the allowable range, you should base your decision on the loss-cut line and “pull it to within the allowable range.” In this issue, we will look at another concept: “narrowing the area width to within the allowable range.”

This approach requires multiple timeframes. The method of analyzing charts does not change with different timeframes, but the wave size and the area width vary significantly. By taking advantage of this characteristic, you narrow the width. The area width becomes wider as the timeframe gets bigger. In other words, when the allowable range is small, the long-term timeframe area will almost certainly exceed the allowable range. So, how should we approach the long-term timeframe area?