Traders Classroom

Date: 27h March 2019

Bharat Jhunjhunwala
CMT, MFTA, CFTe, MSTA
 RANGE RULES
• Andrew Cardwell developed the rules some 35 years ago.

• Security has a different character when it is in a bull phase and a bear

phase.

• Normal Range for RSI is 70/30

• There is a shift in the above levels when market changes character.

 PUBLIC RANGE 70/30

BULL RANGE 80/40

BEAR RANGE 60/20

OVERBOUGHT / OVERSOLD 80/20

How to Trade Range Shifts?
• Spot the Range Shift signal on the chart.

• This gives us the direction to trade in.

• Spot the entry. Take the trade when entry is confirmed by price action.

• If move continues past the second range, it is a confirmation of the

directional change. If not plan exits accordingly.

• Also watch for the neutral zone for support and resistance.