Saturday, September 27, 2008

Price and Range Relationship on the Daily Chart


Recently, Dr. Brett Steenbarger showed the relationship between range expansions and lows in the market. The chart above shows another way to see this relationship. The blue and white lines in the indicator are 5,50 MACD of the ES Price (Blue Line) and its Range (White Line). Note the decreasing ranges at market tops and increasing ranges at market bottoms.
Charles

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