This is Crabel's most famous contribution. It involves identifying a specific price range during the first few minutes of the trading day and entering a trade when the price "breaks out" of that range, signaling the day's likely trend.
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While the book is out of print and original copies are quite expensive, its principles on and mean reversion continue to influence modern algorithmic trading strategies. This is Crabel's most famous contribution
His methods were designed to be purely mechanical, removing emotional bias by providing clear, math-based signals for when to enter a position. For financial advice, consult a professional
He calculated the average distance the price moves from the open before finding resistance, helping traders set realistic profit targets and stop losses .
Crabel identified that when the market experiences an unusually tight trading range (the narrowest in 4 or 7 days), it is often a precursor to a massive spike in volatility and a sharp price move.