Comments on: Narrow Range Bars (Range Contraction)

By: Michael

Michael — Wed, 11 Oct 2006 19:31:34 +0000

Bryan,

I’m not sure. If I had to call it something it would be “sideways chop”

By: Bryan

Bryan — Wed, 11 Oct 2006 18:49:40 +0000

Do you think that CHK is a coiled spring or does it not apply in this situation because the stock has not been trending?

By: Michael

Michael — Tue, 10 Oct 2006 18:51:10 +0000

Hector,

Knowledge of candlesticks would certainly help! I think all traders/investors should know them.

By: Hector

Hector — Tue, 10 Oct 2006 18:34:54 +0000

Do I need to be knowledgeable of candlestick charting to understand dummy trades? I don’t know if this makes sense, but he gives examples but not explainations on how it works like you did.

By: Michael

Michael — Tue, 10 Oct 2006 17:47:54 +0000

I don’t have the stats to be able to answer that.

By: bidmarket

bidmarket — Tue, 10 Oct 2006 17:43:10 +0000

Trader Mike,
Does a NR or NR7 bar have to be an inside bar for the trade to work out best?
Thank you.

By: Michael

Michael — Tue, 10 Oct 2006 17:18:25 +0000

Hector,

Yes, these are example of “dummy” trades. If you really want to know what the dummy technique / style is, go to the source, Maoxian’s Dummy Lessons

By: Hector

Hector — Tue, 10 Oct 2006 16:52:43 +0000

Great explaination. Is this what several call a dummy trade style?

By: Michael

Michael — Tue, 10 Oct 2006 15:34:24 +0000

very true Zoomie

By: Zoomie

Zoomie — Tue, 10 Oct 2006 13:54:55 +0000

Thanks Michael, I love when you give your 21 cents worth.. One thing to note to newer traders is not every narrow range candle is the same. If it is very, very narrow range, and you get stopped out, your loss could be significantly more than your initial planned risk - especially if the bid/ask spread is high. Of course this risk is mitigated with potential higher rewards, that you should expect and be patient for.