Category:TRPA

Trading Range Price Action, which means lots of reversals, prominent tails(LOPT), and limit order entries.

Typical TRPA, image from Al Brooks.

Subtle Observations:

• In typical TRPA, the prices tends to bounce back and forth around EMA instead of staying at one side of EMA for most of the time, i.e. when it gets far above EMA, it quickly goes down (bears sell high); when it gets far below EMA, it will quickly goes up (bulls buy low), i.e. oscillating around EMA. However, traders need to pay attention that some time even there are lots of TRPA on the open, if the bulls keep buying at EMA and bears couldn't bring prices down far below EMA, that is a sign of good BP if not strong BP, this will increase the chance (probably higher than it looks like) that bulls get a swing up sometime during the day. Example: 20220324, 20221107.