Range trading

[sponono]

interesting concept last night from van Tharpe about range trading. Anyone using this method. Number of stocks qualify for rande trading: OML, TKG, PPC.

[#2]

Please tell me where I can get van Tharpe's comments. I have one of his books, but didn't know he has a site, or whatever it is you are referring to

[sponono]

Chapter 4: Trade your way to financial freedom

[Ninja]

nah...range trading risky with limited reward....rather wait for the breakout move where your profit potential is much higher. If you have to range trade i would trade the indices due to massive liquidity, low costs......not shares.

[Rams]

Had a look at range trading and I guess we all range trade but call it support and resistance and use stochastics or other trading indicator to confirm.Agree with TKG but not PPC and OML because its time dependant and could be trending(daily charts) within a range(weekly charts).

[#6]

Thanks for the comments. Very helpfull

[#7]

I agree with NInja on range trading. It has limited reward, so not my favourite type of trading. Essentially, what you are looking for is a stock that is oscillating between price ranges. You pick up at the lower range (usually when a stochastic crosses at the 20-30 level) and you sell somewhere in the middle. Then you repeat the process at the top. My problem with it is that South African instruments are too expensive for this type of trading. A range is usually around 10%-20%. If you are paying 1% in fees, and another 2% in spread, then you are already 15%-30% of your range in the back foot.

[Rams]

Forex:liquid,low fees,small spread but any pair without USD....Can trade shares with CFD or Futures but profits at 20 and 80(stoch)-remember SASOL trading between 270 and 300 for almost a year!

[#9]

FOR ALLAN - You can get Van Tharp at [email protected] or TraderPlanet.com.

[sponono]

OML - looks like the range trade is working out. Now all I need is to wait up to R13 to cover my short.

[sponono]

OML - looks like the range trade is working out. Now all I need is to wait up to R13 to cover my short.

[doomsdayza]

http://www.iitm.com/weekly_update_backissues.htm