Arps RangeFinder™

This powerful analysis tool gives the user an immediate indication at the day’s Open whether the day is likely to be an "Up" day, a "Down" day or a "Sideways" day.

The Arps RangeFinder draws a set of three horizontal lines on an intraday chart. These lines consist of a green High Support line, a red Low Resistance line and a cyan Daily Midline. If the price opens above the High Support line, we can assume that today will be an upward-trending day and that the High Support line will serve as a support level for prices during the day. Conversely, if the price opens below the Low Resistance line, we can assume that today will be a downward-trending day and that the Low Resistance line will serve as price resistance. If the price opens between the two lines, the lines will define the expected trading range for the day.

Many first-time users believe these tools represent an accurate projection of what tomorrow’s trading range will be. This is not necessarily the case. Instead, what is important is to observe how the price trades during the day with respect to these support/resistance lines. If price opens above the High Support Line, then subsequently makes a significant break below this line, there is a high probability that prices will continue to decline all the way to the Low Resistance Line. Conversely, if the price opens below the Low Resistance Line, then subsequently makes a significant break above this line, there is a high probability that prices will continue to rise all the way to the High Support Line.