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         Daily Blog - Tiger Software

                            August 22, 2007

     Profitable Trading
         of Stocks in Trading Ranges


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      to william_schmidt@hotmail.com

      Trading Range Opportunities
                       Most of the time, I admit, when I look at stock charts, I look for breakouts
                from trading ranges, because the stocks will often go up very sharply if we pick
                a stock with high Tiger Accumulation, rising OBV (aggressive buying), leading
                relative strength, gaps and high volume. 

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                     Many stocks are stuck in trading ranges for months.  We can spot
              these because they bound back and forth between lines of support and
              resistance drawn through earlier tops.  It takes some experience to trust
              these lines.  One way to see the safest trading opportunities they present
              is to consider minor new lows near support that show an OBV Non-Confirmation
              (NC).   The OBV Line does not make a corresponding low when compared to
              price.   At the same time, minor new price highs near resistance that occur with the
              OBV Line not making a confirming minor new high are selling opportunities
              while the stock is locked in a trading range.  I have marked these in the chart
              of FLEX.   The horizontal lines are simple regression channel lines that TigerSoft
              makes it easy to display.

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                            Finding stocks in trading is easy with TigerSoft.  One way to do this is
              the stocks that work best with simple Stochastic Buys and Sells.  This indicator
              causes a trader to buy on weakness and sell on strength.  TigerSoft shows you
              stocks that may be traded in this way.  We show you the best Stochastic
              system to trade the stock.  And we show you when a New Buy or Sell is given.

                           In the chart of EBAY, you can see that excellent red BUY and
              and Sell signals were given using a simple 20-day Stochastic.  When our
              Peerless system gives a major Buy we tend to favor the Buy side and look
              for lists of these stocks.  By the waym the TigerSoft automatic Buys and Sells
              would have gained you 78.2% if you had taken each of these signals to long
              or short the stock.

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                         Sometimes, the best trading system is a 50-day Stochastic.  See ERIC below.
                  Here is another chart showing support and resistance.  Note the internal
                  support line at 36,  In this case, the support and resistance lines are
                  parallel.   Note the recent breakdown below the well-tested support at
                  34.   Breakouts and breakdowns past parallel and horizontal support ot
                  resistance lines is more likely to be very significant.  This is because
                  the breakouts or breakdowns are unambiguous techcnically.  Everyone
                  interested in them sees the same thing.  Even traders who might not
                  be bearish the stock's fundamentals may agree that such a stock should be
                  sold, simply because the expectation is that others WILL sell the stock.
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                                  Bulges of positive Accumulation (as seen in July in the chart of EXPD
                     below) usually make for reliable breakouts,  But if our Peerless Stock Market
                     Timing system has given a major Sell, a breakout late in the market's up-move
                     is apt to fail and prices may pull back into the previous trading range,  The
                     bulge of Tiger Accumulation makes a successful test of the support line a
                     very good buy.  How can you know the test is successful?  Rely on the fact
                     that Peerless has shifted to a new Buy for the overall market.  Use the crossing
                     back above the 21-day mcg.avg. as a Buy.  Tiger Users should also consider
                     it a Buy here when the Accumulation Index goes back above its black moving
                     average,   The target then becomes the high closing on the previous rally.

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                                           The FISV chart below shows resistance at 56 in May.  When
                                     prices breakout above that level, 56 becomes support.   ("Broken
                                     resistance becomes support on the next retreat." )  Although the
                                     Tiger Accumulation Index shows mounting red, negative Distribution,
                                     prices respect that support for a while - until July when Peerless
                                     gives a major market Sell.  See how the next rally back up to that
                                     precise level stops the October rally. 

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                                          As time permits, more examples will be posted for users of TigerSoft.
























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