When price is in a range why do some people buy at the top? lol

[propwarrior]

Then it won't be too hard to wait for the range to end and the trend to start.

But really, a range has a probable end, a trend doesn't. No trend will continue for ever, but isn't it better being in something that might continue for a longer time than something that will probably end after a shorter time?

not necessarily the return on your capital is a function of the strike rate, RR and the amount of opportunities that present.

 

[propwarrior]

Institutional money will buy whenever they need to put money to work regardless of top or bottom. They move the markets, while retail traders act like squids.

False. Unless the larger trader is a non price specific (typically utility or hedge) they will look to execute on value for themselves or their client. This is typically via a fill algo (but can be manual) of which there are many types. eg. vwap, growler. A growler is a simple BTD fill algo which is buying value in a range.

 

[tomorton]

not necessarily the return on your capital is a function of the strike rate, RR and the amount of opportunities that present.

Trends are inherently reliable compared to most other chart patterns. R/r is readily improved in a trending position by pyramiding, something which would not often be possible with a ranging position (or any other chart pattern based trade, unless it happened to evolve into a trend). Pyramiding once profit equals initial capital risk and adjusting stops accordingly does not incur any additional capital risk.

 

[viruscore1]

False. Unless the larger trader is a non price specific (typically utility or hedge) they will look to execute on value for themselves or their client. This is typically via a fill algo (but can be manual) of which there are many types. eg. vwap, growler. A growler is a simple BTD fill algo which is buying value in a range.

I guess you are not familiar with mutual fund regulations.

 

[fordewind]

really dumb thing is to sell at top of the range

 

[propwarrior]

Trends are inherently reliable compared to most other chart patterns. R/r is readily improved in a trending position by pyramiding, something which would not often be possible with a ranging position (or any other chart pattern based trade, unless it happened to evolve into a trend). Pyramiding once profit equals initial capital risk and adjusting stops accordingly does not incur any additional capital risk.

I look forward to your argument on why buying high in a range is a good idea. thanks.

 

[propwarrior]

I guess you are not familiar with mutual fund regulations.

Please educate me as to why institutional traders 'buy anywhere' and are price insensitive. Here is a clue, you can't because they don't just buy anywhere only a small subset of them do.

 

[propwarrior]

really dumb thing is to sell at top of the range

Thank you for your well written and detailed post. I look forward to your argument that selling high in a range is a dumb thing to do. thanks.

 

[tomorton]

I look forward to your argument on why buying high in a range is a good idea. thanks.

My argument is it lets me take plenty of opportunities at low risk. What I mean is I only make trades off daily charts, finding that the constructs on these such as range boundaries, channel boundaries, support and resistance, trump those on 4H, 1H or lower.

Of course lower and lower and lower time-frames might make my entry look premature (or late, depending on which way you look at it) but to coin a phrase, where do you draw the line?

 

[learner2007]

Yeay just to confirm I didn't mention charts for example

So how are you going to know it's in a range? Do you have all the prices for the past few months memorized?