� Range Theory Notes
� Range Definitions:
| Name
| Abbr. | Color | Description
|
|------------------|--------|--------|-------------------------------------------|
| Internal Range | IR | Orange | Higher-timeframe context
|
| External Range | ER | Green | Dominant swing
|
| Operating Range | OR | Yellow | Main zone where you operate/analyze setups |
| Sub Range
| SR | Blue | Micro structures inside OR
|
| Proto Range | PR | — | Emerging structure inside SR or as a seed for future OR |
� Static Theory Summary:
- ER (External Range) is the primary, higher-timeframe directional leg (green in diagrams).
- IR (Internal Range) acts as a broader boundary within which the ER is moving (orange
box).
- OR (Operating Range) is where trading setups are considered—includes key HH/LLs, BOS,
and retracements.
- SR (Sub Range) is the microstructure within the OR—includes potential manipulation
zones, short-term pullbacks, etc.
- PR (Proto Range) are early structures forming potential future SR or OR (like inside blue
SR zones).
� Dynamic Theory Rules (Updated):
1. Once an OR is defined, no new Operating Range (OR') can be formed inside it. Only SR or
PR can form within the OR.
2. If a trader tries to define a new OR' inside an existing OR, then:
- Either the existing OR is incorrectly labeled, or
- You're possibly confusing small, unreliable structures (micro pullbacks) as new ORs.
- This can lead to cluttered analysis and conflict with the existing ER.
3. According to static logic, ER is found outside the OR. So:
- If you label another OR inside an existing OR, you might end up with two ERs, which
breaks the core definition.
4. A new ER can only be formed when:
- The previous ER is broken or invalidated, or
- Price action breaks significantly outside the current OR, redefining structure boundaries.