High Low Range

If you are a day trader , you might have noticed that recently it has become very difficult to trade intraday moves. Nifty gaps ups or down and spend the whole day in a tight trading range making short term trading difficult.

One reason  is after the introduction of XX50 option strikes, the play ground has shrunk. Most of the daily moves are due to the action of the day trading crowd. Big boys and institutions were not interested in these  moves between the option strikes which we called BRN. Now they are defending the xx50 levels also

Another reason is volatility compression. Markets are cyclical and alternate between high volatility and low volatility. We are going through a low volatility phase. This is temporary and will pass

Sunil Saranjame of timamo has written an excellent article on this phenomenon.Click to read