For any trader that has been following, and attempting to capitalize on market activity as of late, it is no secret that we have been more or less range bound for quite a while. The issue with the range bound market for traders like myself, and possibly you as well, is the lack of volatility.
Traders want volatility, large swings in the market make it easier to capitalize on market price action however, when you are existing in this type of environment, that is a range bound market, capitalizing on market moves can be somewhat challenging.
As a counterattack on a range bound market, I believe the easiest way to capitalize on this is to shorten our timeline.
As most of you know who follow my work, I am a swing trader-that is I hold a position from days to weeks, I am not typically a day trader however, in a range bound market it may not be a bad strategy to attempt to shorten our timeline and hold stocks for possibly one, two, or even three days.
So the question is how do we do this effectively and capitalize on it?
Most traders use a daily timeline (with their technical charting system) with regard to observing the price action of an underlying equity. I believe the simplest way to capitalize on this range bound market is to use a four or possibly six hour timeline to access price action.
Over the past two weeks I have been utilizing this strategy with a high level of success,
(for my current stock picks click here:) https://traderschoice.net/The-Equity-Lists.html) and until we begin to see volatility return again I am going to stick to this strategy to capitalize on this market.
I would suggest trying this type of strategy and please let me know how you do!
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Happy trading.
Gregory Mannarino