Day Trading - Range Trading

In day trading ranges are identified for a stock  which are usually the highs and lows of the day or the previous day’s highs and lows. Because day trading involves quick trades on a daily basis trends that go back a week or greater are not a strong source or reference.

Day traders mainly look at the highs and lows of the day, and sometimes the previous day or two. They wait for a sign or support if the stock is going down or resistance if the stock is going up. The more times a stock hits these ranges and doesn’t go through the more confidence a day trader has to enter at this point and be secure.

Range Trading rules of wisdom in day trading.
Set up your graphs and Bollinger bands in a way that shows common ranges you can play of.
There is a special way to set up you Bollinger bands. See how to set up Bollinger bands.