Hi traders!
Hope you had an amazing weekend. I usually post ideas where I state trading ranges and the important of them. Therefore, I decided to explain it briefly below and why they are important - please keep an open mind and feel free to ask me any questions below! - Abdulla
What are Trading Ranges?
One of Richard Wyckoff methods to improve the timing when entering a position in anticipation of a coming move is to find trading ranges. So what are trading ranges? They are places where the previous trend (up or down) has been halted and there is a visible equilibrium between supply and demand. When you have a visible equilibrium markets tend to trade sideways. Institutions and other large professional interests prepare for their next bull (or bear) campaign as they accumulate (or distribute) shares within the Trading Range. In both accumulation and distribution (or re-accumulation/re-distribution) Trading Ranges, the Composite Man (or the market makers) is actively buying and selling, the distinction being that in accumulation, the shares purchased outnumber those sold, while in distribution the opposite is true.
Hope you had an amazing weekend. I usually post ideas where I state trading ranges and the important of them. Therefore, I decided to explain it briefly below and why they are important - please keep an open mind and feel free to ask me any questions below! - Abdulla
What are Trading Ranges?
One of Richard Wyckoff methods to improve the timing when entering a position in anticipation of a coming move is to find trading ranges. So what are trading ranges? They are places where the previous trend (up or down) has been halted and there is a visible equilibrium between supply and demand. When you have a visible equilibrium markets tend to trade sideways. Institutions and other large professional interests prepare for their next bull (or bear) campaign as they accumulate (or distribute) shares within the Trading Range. In both accumulation and distribution (or re-accumulation/re-distribution) Trading Ranges, the Composite Man (or the market makers) is actively buying and selling, the distinction being that in accumulation, the shares purchased outnumber those sold, while in distribution the opposite is true.
