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Decision Making Range Markings

Decision making range markings identify the range in and around which bulls and bears decide who is going to exercise control over market price. This is where most consolidation (accumulation or distribution) is expected to happen.

This is marked by the SBER SMI using purple lines.

Wider the range, more the consolidation is expected to happen.

Breakout of this range is not necessarily a beginning of the trend. Most of the times, a market keeps trapping retail traders by giving false breakout. Thus, it is important to validate breakouts with strength & sustenance markings and understand the bevhavior of breakouts.

For non-directional traders, price within purple marking proves to be a highly favorable scenario, specially when range is wider than usual.

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