Learn My Skills

Learn from the mistakes

You are here: Home / Uncategorized / Key Price Patterns before trend range expansion

Key Price Patterns before trend range expansion

February 4, 2019 by Arun Kumar Moorthattil Leave a Comment

Several key price patterns can serve as alerts to the potential for significant range expansion:
1. NR7 — the narrowest range of the last 7 days (Toby Crabel introduced this term in his classic
book, Day Trading With Short-term Price Patterns and Opening-range Breakout);
2. A cluster of 2 or 3 small daily ranges;
3. The point of a wedge-type pattern (which usually exhibits contracting daily ranges);
4.A Hook Day (wherein the open is above/below the previous day’s high/low — and then the price reverses direction; the range must also be narrower than the previous day’s range; leads traders to believe that a trend reversal has occurred, whereas the market has instead only formed a
small consolidation or intraday continuation pattern);
5. Low volatility readings, based on such statistical measures as standard deviations or historical volatility ratios or indexes;
6. Large opening gaps (caused by a large imbalance between buyers and sellers);
7.Runaway momentum (markets with no resistance above in an uptrend or no support below in a downtrend. This condition differs from the above setups in that volatility has already expanded.
In a momentum market, however, the huge imbalance between buyers and sellers continues to
expand the trading range!)

Filed Under: Uncategorized

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Categories

  • financial news
  • GANN Trading
  • NIFTY
  • Trading
  • Trading Emotions
  • Uncategorized
  • Understanding Brain

Recent Posts

  • Key Price Patterns before trend range expansion
  • Nifty Trend Levels and Intraday Support for 09-02-2017
  • Nifty Long Term Forecast
  • Nifty Long Term View
  • Saturn in Capricorn , it effects on Indian Economy and Markets

Copyright © 2019 · Magazine Pro Theme on Genesis Framework · WordPress · Log in