Inclusion of Intraday ranges based on Swing Trade

Dear Friends

Please accept my apologies for not updating the blog for two weeks mainly due to stomach infection thanks to monsoon rains.

As you know, I track markets based on Trend Score method (a true mechanical trading system) which is long term in nature. The day to day volatility has very little impact on the long term trending profile due to which the Trend Score table remains the same despite considerable intraday or intraweek volatility.

To make it more action oriented I have expanded the swing trade section further and included the intraday range along with swing trade recommendations. As I stated before in my earlier commentaries, the swing trade can generate returns in the range of 5% to 10% in one to week’s period and inclusion of intraday ranges makes it useful for the day traders to execute the swing trade on an intraday basis.

The intraday ranges are adaptive in nature and are co-related with the short and medium term historical intraday volatility of the stock. The intraday range will expand if the stock becomes volatile and vice versa. Mind you this is not a “pivot point” method of calculating the intraday day range. It’s a completely new method of range based on the historical behavior of the stock.

Both swing trade recommendation and intraday day range are completely mechanical in nature and require no analyst tweaking thus eliminating the analyst bias from the trade. The intraday range captures the market action 80% of the time; however, only exception will be either on a secular trend day (only up or only down day) or on the corporate result day.

If you have any suggestion feel free to email me at ravikaml@gmail.com.

Thanks and kind regards

Ravi Shankar