All language subtitles for 5. Trading Range Indicators And Confirmations

In addition to looking at training ranges and how they could be indicating a continuation of a trend

or the reverse of the trend, there are additional ways that we can kind of add confirmation to that.

So let's take a look at some of these important ways that we can do that.

A very important thing to look at is volume and volume could be either rising or shrinking in volume.

Basically is looking how many transactions, how many trades are happening?

Is that going up or is that going down?

So a volume is rising as and more people are trading the stock or maybe existing traders are just adding

to their allocation.

Right.

So it's not so new people coming in might be existing people buying more that it tends to accompany

a range expansion and really accelerates a trend which whether it's going up or down, the trend could

be going up or down.

But as volume rises, that will tend to keep the trend going in that direction and really expand on

it.

If you happen to see an expansion of a range, you know, wider range, but it lacks in volume, you

know, then there could be a mystery.

And you need to look at kind of other indicators where it's kind of giving a false signal here a little

bit.

So you could look at indicators like in our momentum section of a course to use to kind of confirm what

been going on.

But the idea is if it's rising, you know, it's going to look at an expansion or accelerating the trend

now.

Volume is shrinking, which means fewer people are in the market for this particular security or or

existing traders are reducing their allocation.

They're now getting out of it.

You know, falling off volume often accompanies a range contraction where the width between the range,

the height and the high and low might be contracting and might be associated with volume, falling volume.

When you're looking at a trading range, a range of prices, nothing you can kind of look at is looking

in terms of trading range and some indicators confirmations is around the open and close position.

You know, there's really four combinations.

You know, you can have an expanding range.

The prices from Hidell are expanding and Close's are getting higher.

There's higher Close's.

So that tends to indicate that buyers think the price is going to keep going higher.

Is the idea that the prices are going to keep higher if the the range is expanding, but the close's

are getting lower, the price is getting lower than sellers are getting a little bit more anxious and

maybe wanting to unload that stock.

The close's are getting lower or lower.

So you look at the expanding range of both the high or lower close aspect.

By the same token, you can look at a contracting arrangement high and low.

So having a contracting range, getting narrower, you know, not as big a with between the low and

the high end, but there is higher close's in the contracting range.

Then it might be in the kitting that investors are feeling uneasy about the direction the security has

been trending in the higher close can offset some of that negative sentiment of the contracting range.

So there might be a little unease.

The range is contracting, but there might not be necessarily a reversal.

You know, they're kind of offsetting a little bit here.

If the range is contracting and the close's are lower, well, that's kind of like a double negative

for an existing trend.

You know, traders are selling at a lower close, so they're willing to take lower prices.

And also the range is contracting as well, too.

So maybe they're really just trying to unload the security and kind of get out of it.

Right.

So, you know, so that's an example.

These are examples where high volume and lower closed in a contracting range.

As an example, you combine the two that can be a real big sell confirmation rate.

High volume, you know, indicates that there's a lot more strength to whichever way the direction is

headed lower.

Kohl's and contracting range shows that prices are going down.

So they're combining them all together.

Could be an example of a real pricing, big sale sell off in terms of price on that.

So there are some additional things to look for when you're looking at like prices in ranges and what

might be happening, whether they're expanding, contracting with volume and what might be going with

expanding range and higher closes or lower closes, looking at all those things together in addition

to the other tools.

So we're going to kind of layer on top of that.