Stock of the Day: Meta – How To Profit From A Trading Range
Stock of the Day: Meta – How To Profit From A Trading Range
There are two ways traders can profit from stocks trading within a well-defined range. The first is to "trade the range." The second way is to "trade the breakout."
交易者可以通过两种方式在股票交易中获利，一是“交易区间”，二是“交易突破”。
As you can see on the chart, shares of Meta Platforms, Inc. (NASDAQ:META) are trading within a range. The top of the range is the resistance around $480.00 and the bottom is support around $462.00.
如图所示，Meta Platforms股票（纳斯达克：META）的交易处于区间内。该区间的顶部是约480.00美元的阻力位，底部是约462.00美元的支撑位。
Trading the range would be to sell if the price gets close to $480.00 and to buy if the price gets close to $462.00.
交易区间将是当价格接近480.00美元时卖出，接近462.00美元时买入。
The top of a trading range is a resistance level. And sometimes when stocks reach resistance they tend to reverse and head lower. This happens when some of the investors and traders who created the resistance with their sell orders start to undercut each other.
交易区间的顶部是一个阻力位。有时候当股票到达阻力位时，它们会反转并下跌。这是因为一些投资者和交易者通过卖出来创造了阻力位，他们开始互相压低价格。
They know buyers will go to whoever is willing to sell at the lowest price. They don't want to miss out, so they reduce the prices at which they are willing to sell. Others see this and do the same. This results in a snowball effect which can push the price lower.
他们知道买家将去愿意按最低价格出售的人那里。他们不想错过机会，所以他们会降低自己愿意卖出股票的价格。其他人看到这一点也会这么做，从而导致了一个滚雪球效应，会推动价格下跌。
The bottom of a trading range is a support level. Sometimes when stocks drop to support, they reverse and rally. This occurs when some investors and traders who created the support with their buy orders worry that they will miss the trade.
交易区间的底部是一个支撑位。有时候当股票下跌到支撑位时，它们会反转并上涨。这是因为一些投资者和交易者通过买入来创造了支撑位，他们担心会错过交易。
They know sellers will go to whoever is willing to pay the highest price. They don't want to miss the trade, so they increase the prices they are willing to pay. Others see this and do the same. It results in a bidding war that can push the price higher.
他们知道卖家将去愿意按最高价格买入的人那里。他们不想错过交易，所以他们会增加自己愿意出价买入股票的价格。其他人看到这一点也会这么做，结果是一个竞价战，会推动价格上涨。
Trading the range would be to buy if the price moves above $480.00 and to sell if the price drops below $462.00.
交易区间的策略是如果价格上涨到超过480.00美元，则买入；如果价格下跌到低于462.00美元，则卖出。
If Meta is above $480.00, it could mean the people who created the resistance with their sell orders have left the market. They have finished or canceled their orders.
如果Meta股票价格高于480.00美元，这可能意味着通过卖出来创造阻力位的人已经离开市场了。他们已经完成或取消了订单。
This means those who want to buy will need to bid premium prices to attract sellers off of the sidelines. This could force the price higher.
这意味着想要买入的人将需要出价高于市场价来吸引卖家从观望位置出来交易。这可能会迫使价格上升。
If Meta is above $462.00, it may mean that the people who created the support with their buy orders have left the market. They have finished or canceled their orders.
如果Meta股票价格高于462.00美元，则说明通过买入来创造支撑位的人已经离开市场。他们已经完成或取消了订单。
This means people who want to sell will need to offer their shares out at a discount to draw buyers off of the sidelines. This could force the shares into a downtrend.
这意味着想要卖出的人将需要以低于市场价的价格出售他们的股票，以吸引买家从观望位置进入市场。这可能会导致股票走向下行趋势。
Photo: Shutterstock
Photo: shutterstock