The Thrilling Exciting Nonstop Great Trading Range of 2015 Simply Continues

How are you doing within the Great Trading Range of 2015?

One of the first steps in the trading process is to analyze the current market condition and then assess the odds of that condition continuing… or changing into something different (ending).

Let’s start the week with an update of the current Range and why it’s leading to successful trading this morning:

First, it’s a core market principle of price behavior that markets alternate (change) between periods of Range Contraction (like this) and Range Expansion (big trend movement in either direction).

It’s an undeniable fact that 2015 – especially from March to present – is a period of “Range Contraction” or consolidation in what I like to call “The Great Trading Range of 2015… So Far.”

While most traders prefer the trending environments, we must adapt to the current condition of price action whether we like it or not.

The reality is that a key support level – a Buy Zone – developed into 2,070 (with small exceptions) just as a key resistance ceiling – a Sell-Short Level – exists near 2,130.

Buyers and sellers are balanced – price is at equilibrium – between these levels.

In fact, we can reference the spot just under 2,100 as the Midpoint or “Magnet” of the Range.

Note how price has been pulled back toward – then beyond – 2,100 throughout the entire range.

Until this situation changes, you should be using these levels to guide your trading decisions (note the big rally this morning UP AWAY FROM the 2,070 pivot… right on schedule as mentioned to members).

For a bit of broader perspective, here’s the entirety of 2015 so far:

If we take the broader picture into focus, we see a bullish or rising period – particularly in February – ahead of the Great Trading Range of 2015 between 2,070 and 2,130.

The Yellow Rectangle Highlight is the “Great Trading Range of 2015” while the Blue Trendlines represent the rising (bullish) start of the year ahead of the bearish or range shift that we’re seeing from May to present.

Take what you’re given in the market and work within that framework.

Right now, the framework (structure) is a well-defined range that – one day – will break out into another trend move.

But that day clearly is NOT today.

Follow along with members of the Afraid to Trade Premium Membership for real-time updates and additional trade planning.

Corey Rosenbloom, CMT
Afraid to Trade.com

Follow Corey on Twitter: http://twitter.com/afraidtotrade

Corey’s book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).