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."
交易者可以通過兩種方式在股票交易中獲利，一是“交易區間”，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.
如圖所示，Meta Platforms股票（納斯達克：META）的交易處於區間內。該區間的頂部是約480.00美元的阻力位，底部是約462.00美元的支撐位。
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.
交易區間將是當價格接近480.00美元時賣出，接近462.00美元時買入。
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.
交易區間的頂部是一個阻力位。有時候當股票到達阻力位時，它們會反轉並下跌。這是因爲一些投資者和交易者通過賣出來創造了阻力位，他們開始互相壓低價格。
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.
他們知道買家將去願意按最低價格出售的人那裏。他們不想錯過機會，所以他們會降低自己願意賣出股票的價格。其他人看到這一點也會這麼做，從而導致了一個滾雪球效應，會推動價格下跌。
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.
交易區間的底部是一個支撐位。有時候當股票下跌到支撐位時，它們會反轉並上漲。這是因爲一些投資者和交易者通過買入來創造了支撐位，他們擔心會錯過交易。
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.
他們知道賣家將去願意按最高價格買入的人那裏。他們不想錯過交易，所以他們會增加自己願意出價買入股票的價格。其他人看到這一點也會這麼做，結果是一個競價戰，會推動價格上漲。
Trading the range would be to buy if the price moves above $480.00 and to sell if the price drops below $462.00.
交易區間的策略是如果價格上漲到超過480.00美元，則買入；如果價格下跌到低於462.00美元，則賣出。
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股票價格高於480.00美元，這可能意味着通過賣出來創造阻力位的人已經離開市場了。他們已經完成或取消了訂單。
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.
這意味着想要買入的人將需要出價高於市場價來吸引賣家從觀望位置出來交易。這可能會迫使價格上升。
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股票價格高於462.00美元，則說明通過買入來創造支撐位的人已經離開市場。他們已經完成或取消了訂單。
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.
這意味着想要賣出的人將需要以低於市場價的價格出售他們的股票，以吸引買家從觀望位置進入市場。這可能會導致股票走向下行趨勢。
Photo: Shutterstock
Photo: shutterstock