Morning vs. Afternoon Ranges A Game-Changing Trading Revelation

I recently saw a clip on Instagram
posted by SMB capital a very very simple
but often misunderstood trading
opportunity if the range after
12:00 is greater than the range before
12:00 so 9:30 to noon noon to 4:00 if
the range in the afternoon is greater
than the range in the morning there is a
very very low likelihood of continuation
in the direction of the trend a very low
likelihood of that it can happen and
when it happens it happens with intense
magnitude but there's a very low
likelihood of that happening based on
the back testing we've done first of all
I was skeptical about this concept in
this particular example this sample size
is pitifully small and so I thought you
know what I'm going to write a script
I'm going to run it through pinescript
on a bunch of stocks and we'll see if
this hypothesis is true now I just went
over 100 stocks with thousands of range
expansion samples overall out of 100
stocks we had 12 stocks have a 50% or
higher chance of continuation in the
trend after range expansion in the
afternoon so I think it's safe to say
that this hypothesis is true ideally I'd
like to do the full 500 would be a great
sample size but 100 stocks 12 of them
had a chance of 50% or higher and two of
them were right on 50% which is
obviously neutral so maybe we shouldn't
even include those two so in that case
we only had 10 stocks with a greater
than 50% chance of continuing in the
trend after range expansion in the
afternoon so in other words when a stock
trades more distance in the afternoon
than it did in the morning there is a
statistically significant chance that it
will not continue in that Trend the next
day it will not close higher than its
previous day's High that's useful
information to know I'm sure you will
all agree now this is obviously an
oversimplification of this analysis but
if you want to get your hands on the
source code of the script and do more
research yourself or watch a video of me
breaking down the code of that script
check out the pin comment below take
care and good luck with your
Trading