Charting Platform for trading of equities, currency and commodity futures
A Profile helps identify brackets and breakouts.
A bracket is a trading range. Using a profile summation over a number of days one can see trading ranges fairly clearly.
Trading is about opportunity, using brackets one can see opportunity for contrarian and with the trend trades. Often the best trades are in opposition to the current move. The bracket chart is detailed as the number of days for the primary bracket (in this case 20), the number of days for the secondary bracket (in this case 10) and the current bracket (in this case 5). These brackets will rollover as each day occurs, ie the primary bracket will always start 20 days back from the current day. The benefit of this is that as price spends more time away from an older price, that older price will have less influence on the current price.
If one believes the market will stay in the lower range, then one can trade the upper bracket extreme to the lower bracket extreme. If one believes that the market is in a downtrend then one can sell the highs of the bracket extreme. If one believes that the market is in an uptrend then one can purchase the lows of the bracket extreme. By using the brackets ideal trade location can be assumed and minimum risk taken.