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In the world of short term trading, whether that be stock, options, futures or whatever security, it has been studied and commonly accepted amongst traders that at least 90% of the participants fail and for most of them this means losing almost all, if not all, of their trading equity. Interestingly enough, the roaring 90's recreated an iron clad set of price momentum based tenets that are all the rage still heard echoing today. In the often self serving world of trading education, these echoes spurned a sloppy subset of commonly accepted trade entry and exit rules that about 90% of the people that pay to hear or read about them today completely devour and digest with a sparkle in the eye and a lusty greed. Well if 90% of the people are losing money and the other 10% are quietly taking it from them, we can easily conclude that 80%-90% of these people were in fact wrong about these rules. This means there is a pervasive gap between the actual truths known by the successful few versus what is being presented and/or how it is being interpreted by the other losing 90% based on what they want or think they need to believe.

The focus here is on how to perfect one's trade entries based on the obscure and often overlooked strategy of properly identifying and trading price and volume range contraction. Once the continuous viewing of case by case trade setups has become assimilated by the viewers, they will also learn the reciprocal of the principals and learn to use range contraction for exiting trades dynamically at tops (or bottoms if short) as well.

Here I will attempt to shatter the long-held falsities of what constitutes good and proper low risk trade entries. Through the principles of both price and volume range contraction, I will present an approach that will for many be precisely what at long last flips the light switch on in their heads and allows them the best available and lowest risk trading entries they could ever hope to achieve. It is my hope that these thoughts, concepts and techniques will help put traders into the elusive 10% (if that) that regularly take money out of the market.