Central bank Dealer Range (THE FLOUT)

Every day you will see a consolidation from 20:00 – 00:00 GMT (THE FLOUT), which will continue into the Asian session.

During this time, smart Money is analyzing the market based on the open position to see what their next move will be

This will help us to know oversold/overbought areas without looking at indicators.

The flout will help us to know where the high and low of the day will form

Look for an entire range between 20:00 – 05:00 GMT (don't trade between these times)

• By using the H1 chart, mark the high and low of 20:00 – 05:00 GMT (mark the body of the candles and ignore the wicks)

• Mark the middle of the range (sellers will be below the middle of the range, and buyers will be above it)

Draw the deviations of (20:00-05:00 GMT range) above and below the range and extend horizontal lines at every deviation

• Expect a high at 1 deviation above the flout

• For a sell trade. After the high is made, the market will fall two deviations below the flout.

• Consider the high form in London

• For a buy trade is the opposite

Expect the flout to occur between Monday, Tuesday, and Wednesday

Sometimes, the price will go slightly above/below the flout.

To Put Simple,

• Measure the number of pips from the low to high of the 20:00 – 05:00 GMT range.

• For a sell trade, the day's high will form at the same pips above the 20:00 – 05:00 GMT range (1 deviation). For example, if the flout range is 20 pips, the high of the day will form at 20 pips above the flout

• The Target or the day low will form at 20 times two below the flout (2 deviations), which will be 40 pips below the 20:00 – 05:00 range.

• For a buy trade is the opposite of the above

The ideal high/low of the day will form at one deviation above/below the flout, but it can go up to 2 deviations for the Reversal market profile (London Close/New York open reversal)

The ideal take profit is two deviations, but it can go up to 3

Consider higher time frame analysis to know the direction of the trade.