How we play trading ranges differs markedly from how we trade a stock that
has just moved past the trading range bounderies. It is important to recognize
when a stock is in a trading range and when its has escaped its confines.
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Flat or Nearly Flat well-tested support and resistance lines define trading range.
Moves past these lines usually end the trading range and start a move in the
direction of the breakout, provided the Accumulation Index and market conditions
confirm and reinforce the new move. Stochastic Buys and Sells work well
within the trading range. The top row of each chart tells yhou what the best trading system
has been for the last year. Stocks have personalities because their followers and market makers
trade in certain ways. Our automatic signals determine the best way to exploit these patterns.
Usually there are warnings when a breakout is going to be false.
A flat bottom (support) and declining resistance (through tops) usually means a BREADOWN.
But Stochastics should be used only in direction of trend once there is a breakout or breakdown.
Selling shor ton Red Sells will usually lose you money unless the internals are very weak.
