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DynaRange

Did you have a target for the flash crash?

Were you watching the markets move intraday during the Flash Crash? Were you short? I hope so. I was, and by sheer luck I covered within 50 Dow points of the bottom. Even though I had already written the DynaRange study, I had just started testing it and I wasn’t watching it intraday. If I had been, it would have told me where to exit the short trade. The daily chart of the Dow shows how the crash reversed from just below a DynaRange support level.


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DynaRange for good exits

We often hear repeated the advice that planning good exits is far more important than entries for successful trading. DynaRange helps traders determine where a trend is likely to end and, therefore, where good exits might be. The First Wave trader has many excellent techniques for identifying good entry points. Once the trend has established itself, DynaRange looks for clues to predict how far it can travel and places them on your chart.

Dynarange is based on the idea that when a long-term stochastics line crosses 50, it is sometimes a signal that price has traveled roughly half of the move. While based on this insightful observation, DynaRange is the result of extensive research and tuning that has honed the basic concept into a reliable trading tool. DynaRange works on just about every instrument and just about every timeframe. Just look at some examples below.

Trading news with DynaRange

Some of you know Kevy99 from chat. He likes to watch DynaRange for short-term scalps using a 55 share chart which is great after-hours. This chart of e-Mini Dow futures from around the time of the August 6, 2010 jobs report shows how DynaRange can be used even in news driven markets. It found the peak prior bad numbers and support where the move ended. The chart also shows how Fisher Stochastics works in concert with DynaRange to help indentify whether price will stop at a particular DynaRange level.


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Price: $497.



DynaRange for Equities

DynaRange works with equities in just about any timeframe. Here are examples of a five minute chart for CSCO, a daily chart for SLB and an hourly chart for AAPL.

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DynaRange for Futures, Forex and more

This page could be filled with 333 tick charts of 10-year treasury futures, weekly charts of gold, and 8-hour charts of EUR/USD. They would show the same thing as the charts above: DynaRange doesn’t provide a prediction for every move, and not every move stops at a DynaRange level. But the number of times price does find a DynaRange line is pretty remarkable. You really should see it for yourself.

Price: $497.



2 Responses to “DynaRange”

  • Profile

    Hi David….Dave Docherty here……

    Wanted to send you a short note and let you know that I am happy with your Fib Grid program that you sold me a few weeks back.

    You may know or not know I am only trading Futures ES (still on SIM with goal to go live 1/1). Would your DynaRange be any help to me…if so …could you give me a few words on how and if not do you have any other programs that you think that I may have an interest in.

    Thanks

    Dave Docherty
    DBDOCHERTY@AOL.COM

    • Profile

      Dave,

      FibGrid and DynaRange work great together. FibGrid levels are all the same across all timeframes. DynaRange levels are specific to the timeframe of the chart you’re looking at. If the two coincide then that’s a reason to pay extra attention. I wrote an which looks at how to use it in some longer-term scenarios. Even for daytrading it is worth reading the article to understand what DynaRange is.

      For daytrading I really like using DynaRange on volume charts of the platform supports them or on tick charts. I use them in two ways: 1) For targets where I might take profits; 2) To look for exhaustion in counter-trend moves where I might try to get in for a resumption of the trend.

      The thing to keep in mind is that in daytrading all of these indicators are merely supplements to your assessment of the style and direction of the day. Then they can serve to help find suitable places to enter the trend.

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