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Trade Secrets: Powerful Strategies for Volatile Markets by Adrian Manz

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CHAPTER 7. The Sinker 52-Week-High Reversal

THE EXPANSION-OF-RANGE-AND-VOLUME trade is a cornerstone of my business. As with the other strategies covered in this book, I capitalise on variations of the expansion-of-range-and-volume set-up with the 52-week-high reversal pattern. When it comes on the heels of a shallow pullback or range consolidation, it is a reliable volatility play that frequently hands over substantial profits. Applied properly, it is stable, reliable, and easy to plan and execute.

When the market gets overextended, this range expansion set-up at new highs can generate strong reversals that are frustrating and can quickly yield a loss rather than a profit. While some traders may be tempted to simply adopt a rule stating ...

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