The Importance of the Range-Charts

I talked about it last night, a lot today and now I can show you why it is important to have a range where we see declines and bounces, why stability is in the range is important and most of all, price action is not always what it seems; a decline is not always a bearish thing, sometimes its the most bullish thing that happens all day.

Here are some example charts.

 DIA 3 min, note the positive leading divergence mostly takes place at the lows of the day.

 DIA 10 min is leading positive in a big way, again, most of the leading is positive at the lows of the day.

 The IWM had a pretty good range all day like the QQQ- 2 min chart

 IWM 15 min leading positive divergence with a lot of leading near the lows of the day for the IWM.

 The QQQ also had a nice range in place today on lower volume-perfect for divergences and saw a  steady positive divergence all day.

 The 10 min QQQ also lead to the upside in today's range.

 SPY 3 min with a huge improvement at the lows of the range today.

SPY 10 min also a big improvement in a leading positive divergence at the lows of the day.

Now it's not just me talking about it, you have charts and evidence.