How do YOU trade a Trading Range ?

Discussion in 'Trading' started by Samson77, Apr 22, 2004.

  1. I think it's safe to say that all the major indexes have been in a
    BIG Trading Range for the last several months now.

    I wanted to pose the question to see what percentage of traders take the current market conditions into account when they trade Intra-Day.

    Personally I alter my style and prefer to Fade breakouts of the Highs and Lows. I also will take smaller profits and have shorter Targets when we are in the middle of the range.
  2. Exactly.. keep on fading the extreme moves. Just make sure u avoid volatile stocks because the momentum can be crazy.

    Stick to the major indices especially the SPY or DIA because they are the choppiest.

    Take note to funemental data and reports because market will be very whippy.

  3. Just keep selling calls naked, and fading every single rally that you see. Do not use stops. Do not look at charts. Sell short into oblivion. It works all the time, every time!

  4. Turok


    James...James? that you?



  5. Cheese


    My way is to pay no attention to the trend. Who can say what it is any way? Is it it going up or down: long term, medium term, short term, this week, next week or for that matter the next half hour bar?

    What a burden?

    The day is what counts. Intra-day: here and now.
    What the market is counts: in my case, index futures and specifically the DOW.

    I need to know what the day ahead is going to do .. broadly. That is my focus. The play is a zero sum game .. and I'm ready and willing.

    Ring that bell.

    But whatever you do, as always, each to his own.
  6. Come on people can we get some more votes on this one ?

    It seems like an important question to me that may help many and besides this is my first poll I've ever taken ... :D
  7. wdscott



    Yes. Treat each day independently, for that matter treat each moment independently. But remember, have a play of what you think the market may do based on previous days action and analysis. But clearly one must reevaluate when it doesn't. It sounds like a contradiction but it's not.

    Such as: [First Play]I think the market should retest yesterdays swing highs squeezing any weak holders before taking it down to test todays S1.

    That does not mean it will happen. Nor should you by any means take trading signals at these levels based on this information alone. The market will tell you at these points if you are right. Just follow and be flexible. I do find it quite helpful to have a framework in mind. A game plan so to speak prepared the night before. Preparation is key before a battle.

    Simply to say "I think today is going to be a trading range day" and I will short an overbought Stochastic reading or CCI bearish divergence and go long for the reverse, will not work well. The market will harshly treat the trader for such thinking . April 22, 2004, I was constantly getting Divergence signals from my MACD, Stochastics, CCI, but the market itself said stay LONG!!! Shorts got absolutely slaughtered. Follow the market action first. Indicators, CCI, MACD, even your own preconceived thoughts should come last.

    The market will tell you what to do, just follow..

    Best Regards,
    Dave Scott
  8. Keltner bands ...babbbyy

    Michael B.
  9. Samson:
    Seems to me that what you are really asking is "Do any of us have a workable strategy for trading a range bound market, that we are willing to disclose to you. I prefer the straight request, but I know that most traders don't respond well to that, thinking that they may have something to lose. Since most trading success comes from risk management (discipline) and execution, I don't agree. Here's what you do. Start by searching ET for posts by nopmplease. You will find a method that works in both trending and consolidating markets (it works fine in the ES for instance). Hope this helps. By the way, unlike Traderbrad the bullshit artist, and Mr. Ramoutar, who has trained 12,000 people in his spare time, I haven't trained anyone, I have no credentials, and I don't charge a penny. I hope this works for you. Regards, Steve46
  10. nkhoi


    sell stradle

    huh! :confused: \V/
    #10     Apr 23, 2004