Let me give you an example. I like to buy coffee capsules for my coffee machine. I can buy them from quite a few different vendors. The price is typically 25c to 30c per capsule, I have seen them as high as 40c but not higher. Sometimes a vendor runs a promotion and they go as low as 15c but most of the time they are around 25c to 30c. I don't keep a chart of the prices I just know from memory that this is the typical price range. Now. Suppose I want to buy some capsules, is it better for me to wait until I see them at 15c or snap them up at 40c. the mind boggles.
Look it up. Hint, mutual funds and etf can only hold a certain amount of cash. You must be a prop trader lol.
Yeah, I think I can handle that when it comes to shopping. But when it comes to knowing the prices of hundreds of stocks and futures for the past few weeks or months, that's going to be rough even for all the great minds here on ET. Charts solve that.
That's cool different opinions are fine that is the essence of a market. I maintain that the majority of institutional traders are price sensitive, the non price sensitive traders who are typically hedgers and utility traders are a small subset of these. Typically the client will want to hedge and will pass the instruction to the broker. The broker will then work the trade as best they can, they look for value, that's their job. GL
Ok, it's now clear that you are not using the term 'range' as most of us do. You are just talking about the high and low for a given period, aren't you?
I'd guess most often that they are anticipating a breakout to the upside and want to get on it "early".... not the percentage play.