Trading Ranges

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.



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.