The first hour’s range today managed all of 4.7 points. Actually the full day was wider — 6.1 points. As I mentioned Friday, I use the first hour’s range to stay out of trouble. I actually took a quick short sale during the early downchannel, but I exited for a break-even trade.

No questions about direction

Watch for days when the first hour range is broken and then re-entered. These often lead to reversals or sideways days. I borrowed one of Dave Landry’s big blue arrows to point out today’s trend.

Nothing else to say today except remember that narrow range days lead to breakouts.

Reference: Dave Landry on Swing Trading

, , , ,