# 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.&#x20;

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During this time, smart Money is analyzing the market based on the open position to see what their next move will be&#x20;

This will help us to know oversold/overbought areas without looking at indicators.&#x20;

The flout will help us to know where the high and low of the day will form&#x20;

Look for an entire range between 20:00 – 05:00 GMT (don't trade between these times)&#x20;

* 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&#x20;

* Expect a high at 1 deviation above the flout&#x20;
* For a sell trade. After the high is made, the market will fall two deviations below the flout.
* Consider the high form in London&#x20;
* For a buy trade is the opposite&#x20;

Expect the flout to occur between Monday, Tuesday, and Wednesday&#x20;

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.&#x20;
* 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&#x20;
* 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.&#x20;
* For a buy trade is the opposite of the above&#x20;

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

&#x20;Consider higher time frame analysis to know the direction of the trade.
