Period range multiples

         Use the period range multiples question to ask questions about the relative size of period ranges.

Example:

         The market extends the first hour’s trading range by more than a factor of two.

Questions from Traders:

         Does volatility after the first hour carry particular significance? Does the market follow through in the direction of the market extension?

Setting Up the Search:

Click on the parts of the box below where appears for explanations of features.

Answers:

         Our search yielded 188 days out of 628 (29.9% of the time) where the remainder of the day was more than twice as volatile as the first hour. This is a good opportunity to use the depth of TPA to learn more about the market. After we’ve conducted our initial search as shown in the example, we then click the All Profiles button in the search results window to bring up profiles of all the days that fit our criteria. Next, we choose a day and click the right mouse button to bring up the TPO and Other Information dialog . Click on New Profile to open the Make A Market Profile Chart window which will generate profiles for the days immediately surrounding the search days. What can you learn about trading on the day after a doubling of the first hour’s range? (Tip: Go with the breakout.)