RANGE BARS

A summary of the advantages of range bars and                                                                      and how to use them is available at this link                                                                              as advocated by Ken (Woodie) Wood:

http://www.futuresmag.com/Issues/2009/November-2009/Pages/Time-is-relative-with-range-bars.aspx?k=ken+wood

Ken Wood gave a very worthwhile presentation on the new range bars on thinkorswim December 7th, 2011.
It is archived under the Chat – Seminars link at thinkorswim

Some examples of trades made in the fall of 2011 using Range Bars:

Some recent stock moves with range bars. Range varies from .50 to $2.00

AAPL has good seasonality starting pre-Christmas and we were expecting a move in the $20 range

U.S. Steel (X) has good seasonality in the period shown and we were anticipating a move to the 100 daily moving average at 28.50

Support and Resistance

SUPPORT AND RESISTANCE

  • When price is going up and hits a level where it bounces down from,
    that level is considered a resistance area
  • Conversely, when price is going down and bounces up at a particular level,
    that level is considered a support area
  • When price breaks through an established resistance level, it will frequently
    retrace to the previous area of resistance. Former resistance hence
    becomes a new area of support
  • Stock prices typically move in quantum fashion. Nicholas Darvas was a
    famous trader who created Darvas Boxes where price was enclosed in
    a S/R range until it moved into a new range
  • When we buy stocks that are moving up, the best entries are at the
    bottom of these ranges where they are close to support or when
    they are breaking into a new range (hence buy stops)