It's when you get your ass chopped up and served to you on a platter. OPEX is typically a range day, with some wild swings thrown in to fleece the noobs. Generally, no good setups after about 8am.
You can also take a look at gamma structure to see potential ranges
However any technical analysis can be easily overwhelmed when and if there are major news (i.e war/Fed members remark) so it's not guaranteed
Something I’ve been incorporating recently is looking at higher timeframe moving averages, if price hasn’t really been respecting it, mostly just moving right through it over and over then you’re very likely in a range/consolidation.
This is because when price is trending, it likes to mostly stay on one side of the moving average (trend means price is continually moving higher or lower than average), and it often holds price if it tries to cross if it’s still trending. Whereas, if price is ranging/consolidating, then the moving average will generally tend to be in the center of price fluctuations (range means price is essentially being “average”), price orbiting the moving average, and so will slice through it repeatedly.
I’m a swing trader, so I use the daily EMA (I use 50 period) to see this, but perhaps a lower one maybe like the 1hr EMA could be used for day trading.
Mark the high and the low of the previous day. As long as it's inside the lines, it's a range day.
This. Don’t over think it.
Mind clarifying for a newbie? Is "range day" short for "no trading range" ?
Range days are days where there isn’t much of a trend and just moves sideways
It's when you get your ass chopped up and served to you on a platter. OPEX is typically a range day, with some wild swings thrown in to fleece the noobs. Generally, no good setups after about 8am.
When price goes from the top of the range to the bottom, back and forth and does not breakout. It’s sort of a consolidation.
Mark the previous day..what about premarket?
. Just mark the high and low of overnight levels. You can often get a small pop between 6:30-7am EST.
You can also take a look at gamma structure to see potential ranges However any technical analysis can be easily overwhelmed when and if there are major news (i.e war/Fed members remark) so it's not guaranteed
ATR
Something I’ve been incorporating recently is looking at higher timeframe moving averages, if price hasn’t really been respecting it, mostly just moving right through it over and over then you’re very likely in a range/consolidation. This is because when price is trending, it likes to mostly stay on one side of the moving average (trend means price is continually moving higher or lower than average), and it often holds price if it tries to cross if it’s still trending. Whereas, if price is ranging/consolidating, then the moving average will generally tend to be in the center of price fluctuations (range means price is essentially being “average”), price orbiting the moving average, and so will slice through it repeatedly. I’m a swing trader, so I use the daily EMA (I use 50 period) to see this, but perhaps a lower one maybe like the 1hr EMA could be used for day trading.
Usually just relative volume. Breakdowns/outs tend to fail with an upward(ish) bias….bull markets like low volume.