|
PureBytes Links
Trading Reference Links
|
| to do a bit more work on some
| fundamentals of what causes narrow range days....
To state the obvious, the market has found equilibrium because every player
has either done his money and can't play or has exactly the position he
can have given his view and bank accounts. All the weak points have been
hit. There is no more money coming in to feed a move at the moment. Once
the intra day players get around the wrong way ie most go to range trading
and get caught short or long and some decent money comes in then there will
be a big move.
Narrow Range days are usually just the floor and short term professionals
playing with each other. The Big Money Off the Floor is leaving it alone.
Market Profile and Steidlmayer is the best stuff for directional and non
directional days.
David Hunt
http://adest.com.au
----------
| From: DLCRL@xxxxxxx
| To: tmorge@xxxxxxxxxxxxxxx; jimo@xxxxxxxxxx
| Cc: omega-list@xxxxxxxxxx
| Subject: Re: NR7 Days
| Date: Sunday, September 20, 1998 2:43 AM
|
| In a message dated 9/18/98 7:47:06 PM Pacific Daylight Time,
| tmorge@xxxxxxxxxxxxxxx writes:
|
| << >
| > (By the way, have you ever seen so many NR7 days in one week? The
>night
| markets have stolen our volatility!)
| >
| > Successful, stress-free trading to all,
| >
| > Bill Masciarelli
|
| << How about giving us some pointers on NR7 days and how to take
advantage of
| them? >>
|
| range expansion follows range contraction and a Narrowest range of the
last
| seven days is merely one way to measure volatilty contraction. During
range
| expansion or on a big range day the market will have ( at least the spoos
) a
| tendency to be more trendy ie open at one extreme and close at another.
Very
| simple opening range breakout stop and reverse systems will work great if
they
| are traded on these types of days. I trade this way.
|
| No by the way i have never seen so many narrow range directionless
CONSECUTIVE
| days like this... I also have never had this large a drawdown due to
this. 12
| consecutive losers . ouch. I would also encourage anyone who is
contemplating
| using a simple arithmetic measure to decide when to switch on or switch
off a
| ORBOS ( opening range break out system ) to do a bit more work on some
| fundamentals of what causes narrow range days....
|
| Dale
|
|