You have heard of narrow range days?
How about a narrow range week?
30 points stem to stern if my calculations are correct…
Volatility is MIA but will revert to the mean after all the shorts finally give up and all the longs on the sidelines get onboard…
I have found narrow bars sometimes reflect one of two things: A reversal of a trend as signified by churning; or an inflection point.
Big help that opinion is, right?
Step by step, day by day… capture profits, accepts stop outs when we are wrong.
Our conservative trades did well today, and most but not all of the aggressive ones did also.
We liked the 92 resistance all day for conservatve plays.
87 88 area was our resistance for scalping, aggressive trades.
Premarket targets were 85, 82, 79, 77. We advised all out 78.5 andused that as support for gap fill, and told shorts to be patient at the open. Profits out by 78 and look to reverse using 92 resistancefor the reversal trade. Profits gathered again by “79”, and then we said protect gains.
We thought a triangle was forming, but felt if the Boyz could muster enough strength to test the HOD, then it was ominous for retesting the 79 low again.
As it turned out, it was more of a rectangular pattern, and the head fakes north and south were enough to trap the aggressive traders both sides.
If you adjusted to the smaller range and exercised patience, one or two of the conservative trades paid off handsomely.
A summer Friday, and volume was thin; the late day Double top trade for the 82.75 target was a great way to end a restrained day of trading.