Home
Best Selling
Ebooks
Pick Best stocks
  My trading blog
FREE newsletter
  Stock chart analysis
Stock chart patterns
Trading strategy
Trading system
  Best online brokers
Stock trading books
Stock trading journal
Trading software
Trading education
  ETF Trading
Commodity ETFs
  Active investing
Ways to invest
  My trading tips
Stock screeners
Daytrading
  About Me
Contact me
Questions ?
Disclaimer
Privacy Policy
SEARCH THIS SITE
  MEMBERS AREA
MY SERVICES

Non-trend trading range
analysis and
stock market strategies

You need to know when a stock is not in uptrend or downtrend . Such situation is named trading range.

This situation can be found when stock finishes its strong trend move. Investors are closing their positions. That means that last leg of uptrend or downtrend is finished by strong and huge pullback. Such pullback can be measured by Fibonacci retracement levels as important trend-reversing pullback (above 60% pullback move).

Also such pullback is accompanied with huge trading volume. As you can know, strong volume after strong trend often signalize important top or bottom in price.

Stock market trading tip

The best of stock market strategies for such stock price environment is to avoid trading stock which is inside of price range.

Generally stock is moving sideways between two significant levels of support and resistance .

Easiest way to identify this situation is see it at chart. Like at this example:


You see that price is moving without any significant trend. There is not easy to find higher high and lows. Price is crossing moving averages up and down too often. Also volume cannot provide any additional hint.

You need to be sure that you know what you can expect that stock can do in near future to do profitable trades. You are not able to tell it with such stock chart.

So you have to avoid trade such stock until it breaks out from this trading range.


Ideas for range stock market strategies

If you want to include some range trading strategy into your stock trading system then I have some recommendations for you.

First be patient. Wait for price to reach and touch support or resistance of such range.

Then wait again for reversal candlestick it can show you that price has tendency to pullback from such important level.

You have to use very tight stop loss for such trade as you never know if the price is going to break under or above such price range.


Return from Non trend trading range to stock chart analysis



Follow me on...


How to Select the Best Stock
& ETFs Using
3 Simple Methods


AMIBROKER is good stock analysis software for stock traders



TRADING DIARY PRO

best stock trading tool for stock traders and investors