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Market Range?

While trying to define “normal” regarding any financial market daily range is arrogant at best and stupid at worse, I will try to help my fellow traders. That said, the “normal” market range is 2%. Now, 2% of what? This is the real question. Also, this question has 2 different answers depending on how one trades.

For the micro dow day only trader, meaning one that does not trade at nighttime after hours, the 2% rule could be applied to the 8:30CST open bell price. Thus, at 8:30 CST and hypothetically if the price was 30,000 the range would be 30,000 * 2% which is 600; aka 600 points. Hence one could use a resistance line at 30300 and a support line at 29700 until closing bell.

For the micro dow “night” trader, meaning one that does trade at nighttime after hours, the 2% rule could be applied to the 00:00 CST open bell price. Thus, at midnight, and hypothetically if the price was 30,000 the range would be 30,000 * 2% which is 600; aka 600 points. Hence one could use a resistance line at 30300 and a support line at 29700 until closing bell.

Yes, the day only trader could use the night only trader’s range. I’ll let you the reader come up with your own applications.