Trading Ranges

ChrisEccles

Private, 1st Class
Messages
47
This chart was kindly circulated by Kathy from GFT.
I'm sure she will not object to it becoming more widely seen.
-
It helps me to assess and evaluate the likely longevity of a
trend when I find one.

tradingRanges.jpg


Aside from big news whips and flooky CB interventions, this
enables a first-cut estimate of how much further a trend
might have to run. It's not foolproof but it does tend to give
you some indication of whether the steam is likely to run out !

-
Chris
 
Trading range represents a potential repricing of assets and shows the beginning of a trend. It tells us that market auction participants do not perceive the repricing as justified.
 
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