Why You Should Pay Attention To A Wide Range Bar

  • July 30, 2004
  • Tsutae Kamada

You may be already
utilizing the TradingMarket’s “3
Day Wake Up Call” list. Watch out when the
stocks close above the previous two days highs, and have the largest daily range
for three days and the most daily volume in three days.

10:11:22

Daily Setup Alert


Following yesterday’s bullish bar, Microchip Technology (MCHP) looks
ready to take out yesterday’s high. MCHP is up 0.09 at 28.92. 

Yesterday, MCHP gapped higher above the triangle and closed strongly near the
day’s high accompanied by increased volume.

Now look at the 5-minute chart from today’s session.

There are some whipsaw movements around yesterday’s high, but the stock is
clearly trading inside of an ascending channel.

Watch out when a stock forms a wide range bar.

T.Kamada Â