The Stagnation Profit Index is a proprietary methodology developed by StockCalc to help investors generate alpha in sideways markets. While most traders struggle when stocks consolidate, the Index identifies 'Support Floors' and 'Resistance Ceilings' with precision, allowing for consistent gains through cyclical range trading.
How Range Trading Works
Prices often bounce between a floor (Support) and a ceiling (Resistance). This strategy exploits these predictable bounces.
- Identify Range: Find recent high and low prices.
- Buy Support: Enter trade near the floor price.
- Sell Resistance: Exit trade near the ceiling price.
- Repeat: Do this multiple times while range holds.
Range Trading Example
ITC is trading between ₹400 and ₹420.\n\n• Buy at ₹402 (near support)\n• Sell at ₹418 (near resistance)\n• Profit: ₹16 per share (4% Return)\n\nRepeating this 3 times in a month gives 12% return, even though ITC started and ended the month at ₹410.
Why the Stagnation Index is Proprietary
Unlike standard range calculators, our Index factors in historical volatility bands and mean reversion probability to define unique buy/sell envelopes.
| Metric | Standard Range | Stagnation Profit Index |
|---|---|---|
| Logic | Linear Support/Resist | Volatility-Adjusted Bands |
| Risk Management | Manual | Integrated 1% Protocol |
| Frequency | Passive | Cyclical (2-3 trades/qtr) |
| Best For | Any stock | High-Liquidity Sideways Stocks |
Frequently Asked Questions
⚠️ Disclaimer
The figures provided by this calculator are estimates based on the inputs you provide and standard financial formulas. STOCKCALC.IN does not offer investment advice. Please consult a qualified financial advisor before making any investment decisions.