Trading index futures.

There is a strong relationship between range size and balance or trending days.
Small ranges often gives balance and bigger ranges often gives trend.

There is a way to somehow predict the type of day by using first hour volume vs 20 day average of the first hour volume.
And also using prior range.

Does anybody know this method, and can explain it further.

Thanks.

svtrader7 

Trading index futures. There is a strong relationship between range size and balance or trending days. Small ranges often gives balance and bigger ranges often gives trend. There is a way to somehow predict the type of day by using first hour volume vs 20 day average of the first hour volume. And also using prior range. Does anybody know this method, and can explain it further. Thanks.

Fat Tails (i.e. Lizard Indicators) has an indicator that does what you ask. It compares todays period x to the same period of time over the last y number of days or days of the week. Don't know if he posted a downloadable early version on this site.

svtrader7 

Trading index futures. There is a strong relationship between range size and balance or trending days. Small ranges often gives balance and bigger ranges often gives trend. There is a way to somehow predict the type of day by using first hour volume vs 20 day average of the first hour volume. And also using prior range. Does anybody know this method, and can explain it further. Thanks.

Search "Opening Range" theory and you might references as this is a much discussed topic.

I agree with Trailer Guy. @Fat Tails has worked on Opening Range topics and is one good source to review.

It just so happens he recently published a blog post on the topic. https://www.lizardindicators.com/blog/

hedgeplay

You can also use this indicator i did a while ago to determine the average range for a given time period:

RangeDisparityMeter Indicator for NT8 I've posted a new indicator named 'RangeDisparityMeter', it is a companion to the 'VOLCumulativeDisparityMeter'. The indicator continuously tracks the development of the trading session's price range as it unfolds and compares …

svtrader7 

Trading index futures. There is a strong relationship between range size and balance or trending days. Small ranges often gives balance and bigger ranges often gives trend. There is a way to somehow predict the type of day by using first hour volume vs 20 day average of the first hour volume. And also using prior range. Does anybody know this method, and can explain it further. Thanks.

Not heard of this one but interesting thesis.

Interesting range v trend video from about 4 years ago.

He's saying a narrow IB may lead to trend, and a wide IB may suggest range days.

abn2609 

Not heard of this one but interesting thesis.

I have done a statistical study on OMXS30 index future, and there is a strong relationship between trend days and higher ranges, and balance days and smaller ranges.
The study is done on OMXS30 because that is what I trade. How this relation is in ES or NQ is not covered in my study.

To understand trend and balance is cruicial for me, because I find it to hard or almost impossible to trade trend during balance and trading balance during trend.