There is a substantial risk of loss associated with trading Derivatives . Losses can and will occur. My methods will not ensure profits

Monday, December 22, 2014

High Low Range

Market volatility is an important factor that determines the profit potential of a day trader. You might have noticed that sometimes Nifty gaps up and spends the entire day in a tight trading range, making day trading very difficult. Further a volatility measure is very much required for knowing what kind of a move to expect and to decide where to book the profits ones you are in a trade..

Markets are cyclical and alternate between high volatility and low volatility. We are going through a high volatility phase. This is temporary and will pass.People generally use ATR as a proxy for volatility. But this measure includes gaps and is not a very true measure from a day trading point of view. High Low range or intraday range is a better proxy of intraday volatility.

Sunil Saranjame of Indian Market Monitor regularly tracks many Market Internals like H-L Range and relative strength. He has made a post on HL Range this week.Please do not ask me to explain more. SS will be the right person to do it Click here to read the post

3 comments:

  1. Hi ST,
    Thanks for the link
    Any blogs or books for reading more regarding indian market internals ?

    rgds
    Kishore

    ReplyDelete
    Replies
    1. I do not know any books on that.
      Stockbee uses many such scans
      http://www.stockbee.blogspot.in/

      ST

      Delete
  2. have a visit they are telling that brokerage is 175 per crore .. no any other charges or tax
    http://finvasia.com/pricing/
    http://finvasia.com/wp-content/uploads/2014/09/Honest-Pricing-Tariff-Sheet.pdf

    ReplyDelete

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