We can see that we're trading within a range defined by yesterday's price highs and the overnight price lows, with the ES futures (above) oscillating around their volume-weighted average price (red line). We're seeing a mixed Cumulative Delta and NYSE TICK, with advancing stocks outnumbering decliners by only 87 issues--also characteristic of a range day. Should we get further contraction today in the Demand/Supply numbers, we'll be on alert for a range breakout trade.
.
Posts
2 comments:
Curious how others play ranges. I always find myself on one side of the range...constantly selling the upper end or else buying the lower end. I almost never have a day when I can make myself defend both sides of the range. Do others handle ranges differently?
TD, the chapter on pivots in John Carter's book might help you. It gives a framework for that exact issue.
(The other setups in the book are terribly outdated, so not sure if that alone is worth the price of the book. In any case, you can view that chapter for free on Amazon.)
Post a Comment