The Previous Day's Trading Range

by James
(Atlanta, GA)

Do you ever consider the previous day's trading range when making a decision on a position? You should!

I do..and have benefited numerous times. It does not matter which strategy I use - this is one of the last steps I do on my checklist.

It is a fairly simple task, but often provides many a successful trading opportunity

Here is what I do- I take the high for the previous day and subtract it from low for that day. If the range is more than $2, I definitely "short-list" this this stock for trading.

I have also used it to determine my entry position - but again thats another story...

Here is the basic rationale - stocks that have a larger trading range present a better opportunity for larger moves to benefit from, than stocks that fluctuate by a few cents each day.

One last note on this - It is easier to use an excel spreadsheet for this task. I have created one if anyone is interested.

Comments for The Previous Day's Trading Range

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Mar 27, 2016
Long range trading
by: Deva Nand Chandola

This is not in line to Larry William's observations stated in his famous book 'Long Terms Secrets of Short Term Trading' that long ranges are followed by short ranges and vice versa. So the traders should be observing short ranges for catching the following long ranges and
trade accordingly.

Deva Nand Chandola

Dec 31, 2014
by: naleep

This strategy is basically based on Bollinger band that is when the band is thin, sooner or later volatility will rule and increase the band thickness and the effect will be like a breakout

Oct 22, 2014
Range Spreadsheet
by: Jim


I'm not sure if you still look at this article you wrote, but if you do, I'd really appreciate you emailing me your spreadsheet.


Nov 17, 2013
excel worksheet
by: ksng

hi, i would like to have your excel sheet if u could kindly send it to my email at:

Jul 04, 2013
Swing Entry Point
by: Sameer


Please tell me the swing entry point which you said here.

"I have also used it to determine my entry position - but again thats another story..."


Jun 15, 2013
Excel sheet
by: Anonymous


Can you please email me the excel sheet that you have prepared? I have been taking loss in intraday and I really need to set myself right.


My email:-

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