Narrow range bar trading strategy

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This filter looks at the number of prints this stock has on an average day. This is based on recent history, not today’s trading. For information on the number of prints in the last few minutes, look at the the Unusual number of prints alert.

How To Develop A Forex Trading Plan & Trading With

Criteria: Equal/Nearly equal highs and higher lows on decreasing volume.
Entry: Breakout from the trend lines on higher then average volume as the trend lines converge.
Stop: Under the lows of the base or last major pivot low on the smaller time frame or under the lows of the setup bar.
Target: Equal distance on a breakout comparable to the distance between the first high and first low in the triangle. Ascending triangles tend to breakout higher.

Range Bar Charts: A Different View Of The Markets

Use negative numbers to find stocks trading below the low of the day. This is possible, especially after market hours. The low of the day only includes official prints, and ignores most pre and post market activity. For example, set the max to - to find stocks which are trading at least 65 cents below the official low of the day.

Every stock is different, and some will respect the 75 period and some will not. In some cases, you will need to modify the simple moving average to a number that the stock respects. This is curve fitting, but we want to put the odds in our favor.

The harder for price to cross a certain level, the stronger it is and the profitability of our trades will increase. The most basic form of Support and Resistance is horizontal. Many traders watch those levels on every day basis and many orders are often accumulated around support or resistance areas.
It important to mention, support and resistance is NOT an exact price but rather a ZONE. Many novice traders treat the support and resistance as an exact price, which they are not. Trader must think of support and resistance as a ZONE or AREA.

Core Short
Head and Shoulders
Oops Daily Buy
Reverse Head and Shoulders
Symmetrical Triangle
Trading Range
Wedge (See Pennant)

How do I trade with it?
As I have marked with the blue lines the price even contracted to a daily move of only 75 points!
A swing trader would be on HIGH ALERT here! Contracting price, lots and lots of overlap.
This presented a very high probability that the price was going to continue in the trend that had started the previous week.
The trade would involve selling when the first candle moved below the contracting range of the previous few candles, A stop could be placed at the most recent minor swing high. ( Orange Arrows )
Another example of a swing trade is shown in the chart below.

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These advanced filters look at the decimal part of the stock price. They are most often used to find stocks trading near a whole number price.

Middle Band = 75-period moving average (most charting packages use the simple moving average )
Lower Band = Middle band - 7 standard deviations.

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