
Thus far this morning, we've seen a classic hit saltation trade. Here are the things nosotros await for inwards identifying a hit day:
* Price oscillating unopen to the opened upward and/or the volume-weighted average cost (red line);
* NYSE TICK oscillating unopen to the zip line;
* Relative residue betwixt book transacted at the marketplace bid vs. offering (bottom histogram);
* Mixed functioning of stocks from their opened upward (as noted inwards Twitter posts);
* Mixed behaviour of marketplace sectors from their open;
* Muted relative book (i.e., lower than average book traded).
When I run into a narrow overnight range, I similar to assume hit behaviour into the marketplace opened upward unless the marketplace shows me otherwise. Staying patient during a hit merchandise tin Pb to prissy "reversion" trades at the hit extremes, only tin equally good assistance traders rest vigilant for the eventual breakout trade.
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