Low Volume, Tight Range day

Today was probably the most boring and hardest to trade for retail traders in relation to the last week, as we had a small range day. The volume was also very low. After the open of the NYSE, price consolidated within a 10 point range, around the 100K supply zone.  You would have had to be very nimble to get any thing out of this day.

Now, I do not know if this was distribution or absorption by the Bulls. However, I will be consistent, and say we witnessed low volume distribution and that we should be looking to sell at good supply levels after the NYSE open tomorrow. Targeting the demand level on the 100K vol chart, between 1630 - 1626.  The next zone down is the throwback around 1615.

However, if we break above the supply level, then the upside target is around the 1660 level.

Last night I showed the 3 Renko chart with a demand zone at the close of Friday. I did this because a Juvenile commented on BMT, and said it was not possible to make a profit using non time based charts- i.e, Tick, Volume, Range and Renko. I thought this was a stupid statement. Although he cannot use these non time based charts, others are able to profit from them because they know how to trade price action, without the necessity for time.

I use all types of charts as I get different information from each, and look for confluence between them.  The time based charts are my main ones, as they allow me to see volume, based on time, as per my VSA methodology. But the others are very useful. As you have seen, the 100K vol chart is my main one for seeing the better S&D zones. With the smaller 20K vol and 8K tick giving better intra-day granularity, and the 2K tick being the entry chart. I also use a 8 tick Range chart for my Volume ladder, which is very important for seeing Delta divergence with price.

Anyway, I was going to say that the demand zone on the Renko chart was very good, as price fell to it from the open on Sunday. It then rallied 14 points into the open of the NYSE, from where it fell 10 points. So the moral of this tale is, that if you understand supply and demand trading, then the chart type is not important as your experience.

Here are todays charts, including the Renko.