Wide-Ranging Days

Wide-ranging days have a true range that is far larger than the days on either side and are especially meaningful after a strong trend. Jack Schwager (Technical Analysis) uses the Volatility Ratio to identify wide-ranging days.

After a sharp down-trend, a wide-ranging day with a strong close is a signal that the trend will reverse.
After a strong advance, a wide-ranging day with a weak close signals a downside reversal.

Extreme wide ranging days often precede a major trend reversal.

Author: Colin Twiggs is a former investment banker with over 30 years experience in financial markets. He co-founded Incredible Charts and writes the popular Trading Diary newsletter.

Colin also writes The Patient Investor newsletter which focuses on the global economic outlook and key macro trends.

In addition, he founded PVT Capital (AFSL No. 546090) which offers investment strategy and advice to wholesale clients.

	Education >> Chart Patterns >> Daily Chart Patterns Wide-Ranging Days Wide-ranging days have a true range that is far larger than the days on either side and are especially meaningful after a strong trend. Jack Schwager (Technical Analysis) uses the Volatility Ratio to identify wide-ranging days. After a sharp down-trend, a wide-ranging day with a strong close is a signal that the trend will reverse. After a strong advance, a wide-ranging day with a weak close signals a downside reversal. Extreme wide ranging days often precede a major trend reversal. Author: Colin Twiggs is a former investment banker with over 30 years experience in financial markets. He co-founded Incredible Charts and writes the popular Trading Diary newsletter. Colin also writes The Patient Investor newsletter which focuses on the global economic outlook and key macro trends. In addition, he founded PVT Capital (AFSL No. 546090) which offers investment strategy and advice to wholesale clients.	Share: Incredible Charts 11.0 Proprietary trading tools and stock screens now in your browser. Free Trial 30-Day Free Trial Try it Now! Trading Diary Free education, macro outlook and technical updates: Join Now A+ A−
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