STZ printed the narrowest range candle on Wednesday. The
idea is , long this stock if breaks 28.88 which is Wednesdays high. Short the
stock if breaks 27.45.NR7 means the narrowest range of the last seven days. For
trending stocks narrow range often proceeds to range expansion aka break outs
or break downs . Simply put buyers and seller become in equilibrium in narrow
range . If buyers take control breakout happens vice verse if sellers take control.
Good thing about narrow range is that it provides tight stop, which if know me
is a must for me.
STZ was an a little exceptional where it did what it supposed
to and shorts piled on only to see the stock breaks out later.Simple, when something doesn't go as expected , opposite happens.
I traded STZ on Thursday from 27.98 , sold most at 28.89. Holding 1/3 for tomorrow.
Click on the charts to see details.
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| Narrowest day/ candle in last seven days. Text book says buy over Wednesdays high and short below low. |
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| Opens below Wednesday low and shorts piled in only too see stock changes direction. |
If
you are interested in trading these setups with me and learn trading,
live in a chat room with a super team of traders, please send me an
email for info. thenyctrader@gmail.com.
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