Contracting Price Range
Note: The historical stock examples given below are for EDUCATIONAL USE ONLY. They ARE NOT to be used to make buy/sell decisions in today's market. For more information, please read the HSR Terms of Use.
Description
Price rallies, but its range contracts on an increase in volume.
Behavior Note: Price closes up during a contracting range week, but given the effort and the lack of range expansion, the price action is negative.
What you need to know
Contracting Price Range weeks are a sign of selling into strength.
During a healthy advance, price range should expand on an increase in volume.
Historical Stock Chart Examples 1A & 1B: Charming Shoppes (CHRS) 1983
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Click to enlarge 1A
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Click to enlarge 1B
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Please >>CLICK HERE<< to go to the next price behavior within Topping Behaviors.
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