In-Range Rolling SL

In-Range Rolling SL Indicator Guide
The In-Range Rolling SL indicator is a dynamic stop-loss system designed for intraday trading that identifies squeeze conditions and trade entry opportunities based on rolling price windows.

Core Concept
The indicator analyzes the highest high and lowest low over a defined lookback period (default: 2 candles) to establish an "in-range" zone. When price stays within this range without breaking either boundary, it creates a squeeze condition—signaling potential breakout opportunities.

Trading Strategy
Wait for the Squeeze Setup
The most effective approach is to wait for the in-range stop-loss squeeze to form. This occurs when both the long SL (green line) and short SL (red line) are active simultaneously, indicated by the yellow status dot (🟡) in the indicator table. Analyze the wick high/close relationship against the in-range SL while price remains compressed—this setup identifies which side is more likely to break first.

Entry Timing and Risk Management
Long Entry: Enter when a candle closes above the in-range short SL (red line) without any wick above it. This "perfect breakout candle" confirms bullish momentum. Your entry should be around the region, with your stop-loss placed just below the top of the breakout candle's high.

Short Entry: Enter when a candle closes below the in-range long SL (green line). The stop-loss for short trades should be set 34.26 points above your entry for appropriate risk protection.

Risk-Reward Considerations
If you enter at the low of a breakout candle, expect only 8.26 points of drawdown potential. However, if you accidentally go long and your stop gets hit, you'll experience the full in-range stop-loss distance as your loss.

Advanced Techniques
Failed Breakout Trap: If a follow-up candle doesn't make a higher high after the initial breakout, consider adding a "winner" for compensation rather than holding for a trap. When your buy-stop sits on top of the breakout candle high, this isn't a valid long trade setup.

Flip Trade Opportunity: In-range stop-loss attempts to flip often provide ideal entry points. If the up candle doesn't break the previous low, this validates the long continuation.

Long Scalp Trading: A failed long scalp can be traded if you missed the initial market open down-up-down trend. With a stop-loss of 34 points and potential profit exceeding 50 points, this provides favorable risk-reward ratios.

Sustained Loss Management: Stop-loss for long positions should target 26 points maximum loss. The indicator automatically invalidates stop-losses when price violates them, keeping your chart clean for the next setup.

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In-Range Rolling SL Indicator Guide
The In-Range Rolling SL indicator is a dynamic stop-loss system designed for intraday trading that identifies squeeze conditions and breakout opportunities based on rolling price windows.

How the Indicator Works
The indicator tracks the highest high and lowest low over your selected lookback period (default: 2 candles) to establish dynamic support and resistance levels. These levels create an "in-range" zone that adapts as new price action develops.

Visual Components
Green Line (Long SL): The rolling window's lowest low - your stop-loss level for long positions

Red Line (Short SL): The rolling window's highest high - your stop-loss level for short positions

Status Indicators:

🟡 Yellow: Squeeze condition (both SLs active)

🟢 Green: Long-only setup

🔴 Red: Short-only setup

⚪ White: Neutral (no active SLs)

The Squeeze Setup Strategy
Step 1: Wait for the Squeeze
The most effective way to use the In-Range Rolling SL is to wait for the in-range stop-loss squeeze to form. During the squeeze, both the green and red lines are active, meaning price has stayed within the rolling window without breaking either boundary. This compression phase indicates that it's "go time" to prepare your trade.

While in the squeeze, analyze the wick high/close relationship against the in-range SL levels. This analysis helps you determine which side is more likely to split when the breakout occurs.

Step 2: Identify the Perfect Breakout
Long Breakout: A perfect breakout candle should close above the in-range stop-loss high (red line) without any wick above it. This clean breakout demonstrates strong momentum and reduces the risk of a false breakout.

Short Breakout: Look for a candle that closes below the in-range SL low (green line), indicating a short-side trade is coming up.

Step 3: Entry Execution
Long Entry: Your entry should be around the region of the breakout. Position your stop-loss just below the top of the breakout candle's high. This placement protects you from failed breakouts while giving the trade room to develop.

Short Entry: Enter as the candle closes below the in-range SL low. The stop-loss for short-side trades is typically 34.26 points of potential loss based on the indicator's measurements.

Risk-Reward Analysis
Entry at Breakout Low
If you enter here at the low of the breakout candle, you're looking at only 8.26 points of drawdown potential. This represents your best-case entry scenario.

Accidental Wrong-Side Entry
However, if you accidentally go long here and your stop gets hit, you'll experience the full in-range stop-loss distance as your loss. This emphasizes the importance of waiting for clear breakout confirmation.

Long Scalp Opportunity
A failed long scalp can be traded here if you missed the market open down-up-down trend. With a stop-loss of 34 points and potential profit greater than 50 points, this setup offers a favorable risk-reward ratio of approximately 1:1.5.

Advanced Trade Management
Failed Breakout Recognition
Follow-Up Candle Validation: If a follow-up candle did not make a higher high than the breakout candle, this could be a trap. Your buy-stop on top of the breakout candle high is not a valid long trade setup in this scenario. Consider adding a "winner" for compensation rather than holding through the potential reversal.

Flip Trade Opportunities
In-range stop-loss tries to flip to the other side often provide excellent entries. If the up candle did not break the previous low, this validates the long continuation and suggests the squeeze is resolving to the upside.

Sustained Position Management
Stop-Loss Guidelines: Stop-loss for long positions should be 26 points of maximum loss. The indicator table displays the delta (Δ) showing your real-time distance to the active stop-loss, helping you manage risk dynamically.

Entry Timing: Your entry should be around the region where the breakout confirms, rather than chasing price after a large move. In order to prepare your trade, position your stop-loss on top of the breakout candle's high for long trades.

Practical Example from the Chart
Looking at the MNQ1! chart, you can see multiple squeeze formations throughout the session. The most notable sequence shows:

An initial downtrend creating a squeeze setup

A perfect breakout candle closing above the red line without upper wick

The subsequent candle validating the move

Later, a failed breakout attempt that created a short opportunity

Multiple flip attempts that provided re-entry points for scalpers

The indicator's table in the top-right continuously updates with the current SL levels, gap size, candle size, and delta values - giving you all the information needed to assess each trade's risk-reward profile in real-time.