T4J, there are 2 basic ways to use a market's range to your advantage. Let's first look at the more common way:
A daytrader who pays attention to the ADR would say, "I know Nifty is going south today (Just an example.), so I will wait for it to progress a little north from the opening price, and then initiate a short, then set a TP for 89 points from point of entry.
Let me add at this point this is the reason my S&R's are as accurate as they are. They take into account the AR, then cycles within the range. AS an example look at last week's range on Nifty and notice the this week's P to 3 is about equidistant as last week's range. The reference points represents cycles within the range. A normal week will range from a 1 to its polar 2. A strong trending week will hit it a 3.
A non-conventional method to use an ADR is the way that I personally prefer. First the ADR is only an average. Some days will be higher, some days will be lower. That's just the way it is. We've talked about non-decisive times a market will have, and it is those times when it is expected that the DR will be under the average. When at the beginning of a new trend, it will be above it. In knowing this information a trader can be more conservative with regard to the ADR in uncertain times and more aggressive during trending times.
ADR's are also excellent for forex, as they are used to mathematically dispel many arguments over which currencies move which pairs. It can also be used to show certain interrelationships between pairs.
A daytrader who pays attention to the ADR would say, "I know Nifty is going south today (Just an example.), so I will wait for it to progress a little north from the opening price, and then initiate a short, then set a TP for 89 points from point of entry.
Let me add at this point this is the reason my S&R's are as accurate as they are. They take into account the AR, then cycles within the range. AS an example look at last week's range on Nifty and notice the this week's P to 3 is about equidistant as last week's range. The reference points represents cycles within the range. A normal week will range from a 1 to its polar 2. A strong trending week will hit it a 3.
A non-conventional method to use an ADR is the way that I personally prefer. First the ADR is only an average. Some days will be higher, some days will be lower. That's just the way it is. We've talked about non-decisive times a market will have, and it is those times when it is expected that the DR will be under the average. When at the beginning of a new trend, it will be above it. In knowing this information a trader can be more conservative with regard to the ADR in uncertain times and more aggressive during trending times.
ADR's are also excellent for forex, as they are used to mathematically dispel many arguments over which currencies move which pairs. It can also be used to show certain interrelationships between pairs.
