Trading Range

So here we are at a SP close to that of the recent low.

We can see that Thred SP has moved away from down trending (during the indicated time period) and into sideways trending (within a range).

We can also clearly see that the wave within that range is considered "true" between 1c & 1.5c given both the rejection of the market to push and keep price above 1.5 and the rejection of lower prices below 1c (so far).

So if you are going to trade this stock (at your own risk) are you going to buy in at 1.4-1.5 or are you going to take a position at .9-1c? Easy answer right?

Well easy but not fail proof.

We have to consider what volume is telling us in respect of price action. What is the volume each day in respect of what candles and patterns of candles are forming?

Are we seeing low volume on a significant price push down? How bearish is that? Is that volume decreasing or increasing on that push down? Is volume trending down while the SP is trending down? What does that mean? Is the volume trending up while the SP is trending sideways? What does that mean? Are the candles bullish/bearish/indecisive?

These things need to be considered in order to successfully trade the (existing) range to advantage.

If it breaks 1c & closes at .9 or below that's a range break in the wrong direction. Cut and run. If it closes above 1.5 and the volume plus candle action is bullish then possibly add to or exit your position on a successful trade.

It's not entirely that simple but that's how I look at it.
If that helps somebody execute a trade here like I did recently at avg 1.2 buy and avg 1.7 sell then that's great.

Just don't be afraid to act when the market moves both for or against you because it always will.

GLTAH