RCR trading example
The Range Change Ratio (RCR) is a volume based trading technique which I devised to help me identify when there has been a washout of the Bears and fresh Bull money appears to have come into a stock, indicating a potential turn around in a down trending stock. The RCR technique is discussed at length in my book, Simple Tactics, Profitable Trading. In this example, the RCR volume and price based indicator identified an entry into MYX at around 75 cents. It identified setting a stop-loss at a close under 73 cents. At the time of writing MYX was up around $1.00 - a 25% price increase since the RCR uncovered this stock for traders.
The MYX chart above is not a one-off. We can use the RCR technique to get better, safer entries into stocks on a regular basis. Here is another real time example using Myer (MYR).
Page updated 28-7-18