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.
stocks are stuck in trading ranges for months. We can spot
because they bound back and forth between lines of support and
drawn through earlier tops. It takes some experience to trust
lines. One way to see the safest trading opportunities they present
consider minor new lows near support that show an OBV Non-Confirmation
The OBV Line does not make a corresponding low when compared to
At the same time, minor new price highs near resistance that occur with the
not making a confirming minor new high are selling opportunities
stock is locked in a trading range. I have marked these in the chart
The horizontal lines are simple regression channel lines that TigerSoft
easy to display.
stocks in trading is easy with TigerSoft. One way to do this is
that work best with simple Stochastic Buys and Sells. This indicator
trader to buy on weakness and sell on strength. TigerSoft shows you
may be traded in this way. We show you the best Stochastic
trade the stock. And we show you when a New Buy or Sell is given.
the chart of EBAY, you can see that excellent red BUY and
signals were given using a simple 20-day Stochastic. When our
system gives a major Buy we tend to favor the Buy side and look
of these stocks. By the waym the TigerSoft automatic Buys and Sells
gained you 78.2% if you had taken each of these signals to long
the best trading system is a 50-day Stochastic. See ERIC below.
is another chart showing support and resistance. Note the internal
line at 36, In this case, the support and resistance lines are
Note the recent breakdown below the well-tested support at
Breakouts and breakdowns past parallel and horizontal support ot
lines is more likely to be very significant. This is because
breakouts or breakdowns are unambiguous techcnically. Everyone
in them sees the same thing. Even traders who might not
bearish the stock's fundamentals may agree that such a stock should be
simply because the expectation is that others WILL sell the stock.
of positive Accumulation (as seen in July in the chart of EXPD
usually make for reliable breakouts, But if our Peerless Stock Market
system has given a major Sell, a breakout late in the market's up-move
apt to fail and prices may pull back into the previous trading range, The
of Tiger Accumulation makes a successful test of the support line a
good buy. How can you know the test is successful? Rely on the fact
Peerless has shifted to a new Buy for the overall market. Use the crossing
above the 21-day mcg.avg. as a Buy. Tiger Users should also consider
a Buy here when the Accumulation Index goes back above its black moving
The target then becomes the high closing on the previous rally.
FISV chart below shows resistance at 56 in May. When
breakout above that level, 56 becomes support. ("Broken
becomes support on the next retreat." ) Although the
Accumulation Index shows mounting red, negative Distribution,
respect that support for a while - until July when Peerless
a major market Sell. See how the next rally back up to that
level stops the October rally.
time permits, more examples will be posted for users of TigerSoft.