Is a fact the market is often in a range bound condition and this means there is a lot of choice for who want to trade this kind of market, is a fact that a range bound can be also seen in two parallels line in an up and down trend. Is a fact for instance just to mention evidence that SPX before to breaking down on weekly/daily the trend line, was in a perfect channel, an up trending one, and if I see charts empirically looks kind of backtested. Still, I do not see, hear of successful traders that made a fortune on that, there are a lot of explanation of using a stochastically indicator, interpreting the volume as support in the educational materials but I never heard of a successful swing/day trader using them. Is a broken strategy or a well kept secret?
Range Bound
- Thread starter Ivano
- Start date
you missed some vital info.
small range bound - not tradable
big range-bound - it could be tradable.
if the movement is decisive / trendy / organised, that is good for trading.
Look out for continuation and reversal signals.
Last few days, crude oil futures is in this category.
its day range was very wide at ~ 10%.
if the movement is choppy / messy / disorganised, that is bad for trading.
just use naked eyes & chart without any indicators to trade.
small range bound - not tradable
big range-bound - it could be tradable.
if the movement is decisive / trendy / organised, that is good for trading.
Look out for continuation and reversal signals.
Last few days, crude oil futures is in this category.
its day range was very wide at ~ 10%.
if the movement is choppy / messy / disorganised, that is bad for trading.
just use naked eyes & chart without any indicators to trade.
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Good traders adapt to the circumstances.
Fortunes are relative. For me, a 7 figure year would be amazing. For others it would be average.
[QUOTE="just use naked eyes & chart without any indicators to trade.[/QUOTE]
Agree: naked eye + chart
+ range pattern is not erratic/noisy
+ there is a previous up move not too bumpy
+ range pattern is not flat ("fence") e.g. must contain some kind of shakeout (unless this is a Flag)
+ range pattern is at least 3 weeks (unless this is a Flag)
+ breakout candle should be green (better with body larger than average).
Obviously, all of this is very subjective so you need:
1. To train your eye (I look on ~50 to 100 charts every trading day)
2. Fight FOMO. Very short checklist (5-6 lines at most) may help.
One thing that helps me a lot: I record every trade in PowerPoint: 6 months chart of the Entry day and 6m chart of the Exit day. I review these powerpoints once a while.
Agree: naked eye + chart
+ range pattern is not erratic/noisy
+ there is a previous up move not too bumpy
+ range pattern is not flat ("fence") e.g. must contain some kind of shakeout (unless this is a Flag)
+ range pattern is at least 3 weeks (unless this is a Flag)
+ breakout candle should be green (better with body larger than average).
Obviously, all of this is very subjective so you need:
1. To train your eye (I look on ~50 to 100 charts every trading day)
2. Fight FOMO. Very short checklist (5-6 lines at most) may help.
One thing that helps me a lot: I record every trade in PowerPoint: 6 months chart of the Entry day and 6m chart of the Exit day. I review these powerpoints once a while.
Some profitable traders do not go online to talk about their profits...it's the reason why you do not see nor hear about these traders.
Just the same, some profitable traders go online and brag about their profits...its the reason why you do see and hear about these traders.
Just as important, there are traders that do trade range-bound price action but they're not going to reveal their trade method to anonymous user names. Yet, you will come across that do reveal some aspects of their trade method but not the most important aspects.
Regardless, you shouldn't be worried about them...only focus on your own trading. Yet, if someone does share a few nuggets with you, most likely they aren't sharing everything that they do in their trading...sometimes it's because that other critical stuff in trading is something that can not be shared because successful trading is not only about trade signals.
wrbtrader
Bill: How's it going Ted
Ted: Dude, f@ck this. I'm tired of losing money
Bill: Can you sit in front of your computer without trading?
Ted: Dude, how can I make money without trading?
Bill: For the next 30 days, pick only 1 market.
Just watch price, sit on your hands and do nothing
but watch.
Ted: LOL, dude, that's nuts, what can I
expect from such a crazy idea?
Bill: Every week make a list, and categorize
how price moves. Then print out the day's
trading activity. Scribble on your printed
chart your categorized price movements.
Ted: You actually expect me to do all that mess?!
Bill: After 30 days are complete, trade only
the market you've been studying.
Ted: I'll think about it.
Ted: Dude, f@ck this. I'm tired of losing money
Bill: Can you sit in front of your computer without trading?
Ted: Dude, how can I make money without trading?
Bill: For the next 30 days, pick only 1 market.
Just watch price, sit on your hands and do nothing
but watch.
Ted: LOL, dude, that's nuts, what can I
expect from such a crazy idea?
Bill: Every week make a list, and categorize
how price moves. Then print out the day's
trading activity. Scribble on your printed
chart your categorized price movements.
Ted: You actually expect me to do all that mess?!
Bill: After 30 days are complete, trade only
the market you've been studying.
Ted: I'll think about it.
Likely best trades when market is "range-bound"...
Buy the bottom the range, sell the top of the range... stuff in the middle is too "iffy"... so save your trades for range/chart extremes.
Well thanks everyone, I get some idea, my best quality is creativity, so will find my own hedge, this is a setup that can take minutes to execute and years to improve, Personally I liked a lot the suggestions from itzhakh, plus I am going to see volume patterns, I am not going to buy before the trend is reverted with some exhaustion red volume, will use only marginally overbought and oversold from Stoch. indicator, multi time frame strategy to find the resistance and trend lines, monthly and weekly channels, entry point day and minute. 
And a lot of backtesting as visual recognition pattern, no python.
And a lot of backtesting as visual recognition pattern, no python.
Read again OP..
Good Question Ivan!
"Interpreting the volume as support, fact or fiction" - Anybody care to provide marked-up charts as visual aids
to support or debunk the "interpreting the volume as support" proposition?
Textual explanations and handwaving arguments are not convincing.
Visual charts and examples please both pro and con.
Entry triggers, stops, and exits would be icing on the cake.
Show us the money.