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Dealing Range Theory. London Expansion and NY reversal. 08.10.26

In-depth analysis of the trending trading setup: Dealing Range Theory. London Expansion and NY reversal. 08.10.26. Learn entry rules, stop loss placement, and risk management.

Published by TradeYouLike Research Team • Technical Analysis & Strategy

Dealing Range Theory. London Expansion and NY reversal. 08.10.26

Social media has been highlighting this trading setup. Here's a detailed breakdown of the core mechanics, separated from the hype.

Strategy Overview

Outlining the daily orderflow on NQ and ES. Explained the shorts and the longs based on the dealing range theory

Key Trading Rules

  • Entry: Look for clear reversal patterns (engulfing, pin bar) at key support/resistance levels
  • Stop Loss: Always place behind structural swing high or low. Risk only 1-2% per trade
  • Target: Next key level or minimum 1.5x your risk

Conclusion: While this strategy has strong momentum, execution requires discipline, emotional control, and strict risk management.