Info!! A Get-Go Await At Stock Marketplace Momentum

Are markets that are potent inwards the close recent fourth dimension current to a greater extent than probable to merchandise inwards a higher house the highs for that current inwards the side past times side period?

Are markets that are weak inwards the close recent fourth dimension current to a greater extent than probable to merchandise below the lows for that current during the side past times side period?

I went dorsum to mid-2006 together with examined whether the S&P 500 Index (SPY) closed inwards a higher house or below its weekly pin cost (an justice of average trading price; see here) to encounter if the unopen affected the likelihood of hitting fundamental cost points during the side past times side week.

What I establish was:

* If SPY closed inwards a higher house its weekly pivot, the side past times side calendar week traded inwards a higher house the prior week's high cost 175 times together with failed to touching the high cost 56 times.

* If SPY closed inwards a higher house its weekly pivot, the side past times side calendar week traded below the prior week's depression cost 65 times together with failed to touching the depression cost 112 times.

* If SPY closed below its weekly pivot, the side past times side calendar week traded inwards a higher house the prior week's high cost lx times together with failed to touching the high cost 171 times.

* If SPY closed below its weekly pivot, the side past times side calendar week traded below the prior week's depression cost 147 times together with failed to touching the depression cost 53 times.

What that suggests is that markets that unopen potent (weak) on the calendar week tend to brand novel highs (lows) the next week.

I together with therefore looked at weekly advancing together with declining issues for the NYSE. I wanted to encounter if potent (weak) markets inwards the prior calendar week carried over their strength/weakness to the next week. What I establish was:

* If the weekly A/D ratio was positive inwards the close recent week, SPY traded the side past times side calendar week inwards a higher house the prior week's high 176 times together with failed to touching the high cost 76 times.

* If the weekly A/D ratio was positive inwards the close recent week, SPY traded the side past times side calendar week below the prior week's depression 65 times together with failed to touching the depression cost 112 times.

* If the weekly A/D ratio was negative inwards the close recent week, SPY traded the side past times side calendar week inwards a higher house the prior week's high 88 times together with failed to touching the high cost 164 times.

* If the weekly A/D ratio was negative inwards the close recent week, SPY traded the side past times side calendar week below the prior week's depression 117 times together with failed to touching the depression cost lx times.

Once again, nosotros encounter that potent markets tend to accept out the high prices during the next week; weak markets tend to accept out the depression prices during the next week.

This suggests that buying (selling) pullbacks (bounces) piece of cake inwards a potent (weak) marketplace position weak together with belongings over the weekend for a seek of the prior week's highs (lows) could live on a promising strategy. More on the basics of a Momentum swing trading organization to come.
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