ICT Dealing Range

The ICT Dealing Range indicator identifies and plots institutional price ranges where smart money typically accumulates or distributes positions before significant market moves.

Usage

The Usage section focuses on how to interpret the plotted ranges for identifying institutional order flow. The tool automatically detects specific sequences of price action that define a dealing range.

Entry Methods

• Range Extreme Retests: Traders can look for price to return to the range boundaries. Long entries may be considered at the range bottom, while short entries can be sought at the range top.
• Mid-Line Strategy: The mid-line (equilibrium) serves as a pivot point. Rejections or bounces from this level can indicate a continuation or reversal within the established structure.

Risk Management

• Stop Loss Placement: When trading extremes, stops are commonly placed beyond the mid-line or the opposite extreme. When trading the mid-line, stops are typically placed beyond the outer boundaries.
• Targets: Minimum 2:1 Risk-Reward ratios are recommended, targeting the opposite extreme or the next major structural level.

Details

A Dealing Range is a significant price area formed through a specific sequence of highs and lows. The indicator looks for the following patterns:

• Bullish Sequence: Initial High (H) -> Initial Low (L) -> Higher High (HH) -> Lower Low (LL) -> Break above HH (confirmation).
• Bearish Sequence: Initial Low (L) -> Initial High (H) -> Lower Low (LL) -> Higher High (HH) -> Break below LL (confirmation).

The tool allows for two concurrent detection periods (Left/Right lookback sets), enabling the identification of both short-term and long-term dealing ranges on a single chart.

Settings

• Bullish Dealing Range: Sets the color for bullish range boxes.
• Bearish Dealing Range: Sets the color for bearish range boxes.
• Draw Dealing Range: Toggles the visibility of the detected range boxes.
• Mid Line: Enables or disables the equilibrium line within the range.
• Mid Line Style: Choose between solid, dotted, or dashed line styles.
• Use Logarithmic Scale: Calculates the mid-point using a logarithmic scale for more precise financial modeling.
• Left/Right 1 & 2: Adjusts the pivot lookback periods for the first and second dealing range detectors.
• Transparency 1 & 2: Controls the opacity of the range boxes for each detector.
• Enable Alerts: Toggles notifications when a new dealing range is confirmed.

FAQ

How do I access ICT Dealing Range?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.

What is the difference between Range 1 and Range 2?

The indicator includes two separate detection engines so you can track different periodicities simultaneously (e.g., one for short-term pivots and one for long-term structures).

Why does the mid-line use a Logarithmic Scale?

The logarithmic scale option calculates the geometric mean instead of the arithmetic mean, which can be more accurate for assessing "fair value" in highly volatile markets or over large price distances.