Of note: XLB 30 day number line at 13. This is the leader now for the sectors I watch. Possibilities: DD, FCX, PX, DOW
I was going to ask about this, and these examples give me a good chance to. (they had large OR) I have been looking at statistics on equities concerning OR/DailyATR ratios, and behaviors. One thing I am noticing, is that alot of the time a large relative (volatile) OR, leads to a larger intraday move, and vice versa. The reason I bring this up is that awhile back, I think an idea that was being kicked around was that looking for small intraday ratios perhaps led to better setups. (small being a ratio of < .20 or around there) From what I have seen so far, small OR's usually lead to little action, and volatile/sloppy OR's lead to bigger intraday runs. So it seems kind of the reverse than what was suspected. Can anyone comment on this or add any insight? B/c I have been looking to stay away from larger than usual OR's, but in hindsight it seems like those were the best opportunities, when I reivew each days activity on stocks. (The only idea I can come up with is that finding small intraday OR's can be good candidates for moves that catch people off guard. Or perhaps failures off of an A up/down, to fade for a favorable R/R trade.)
Everything is relative. A stock that is in a strong uptrend that has been relatively quiet lately but is breaking out of a tight OR usually leads to great follow. You can also have a stock with a wide OR that does exactly the same thing but again, it's coming out of a quiet pattern over the previous days or weeks. So I don't think you can just look at one day in a vacuum.
Best way to see if wide or, narrow or etc.. will materialize is keeping track of 30 days number line along with daily pivot range, 3 day rolling pivot range etc.. Like Maverick74 said, it's all relative. If anyone knows a programmer who can write a programme for me to keep track of 30 days number line along with a up/ a down levels etc.. for stocks, futures etc.. please let me know.