This is a follow-up on my postal service outlining the recalculated daily net targets. Going dorsum to January, 2000, nosotros find:
About 70% of all trading days touching their pin level;
About 84% of all trading days touching either R1 or S1 levels;
About 66% of all trading days touching either R2 or S2 levels;
About 50% of all trading days touching either R3 or S3 levels.
The keys to using this data are twofold: 1) position relative book inwards existent fourth dimension to approximate probable marketplace position volatility too 2) rail intraday persuasion inwards existent fourth dimension to approximate probable directionality. Those ii factors assistance traders handicap inwards existent fourth dimension the levels we're probable to hit.
Range days volition virtually ever merchandise dorsum to the pin degree calculated from the prior day.
Trend days volition virtually ever accomplish the R3 or S3 levels.
About 85% of trading days volition guide keep out their prior day's high or low. For that reason, R1/S1 too the prior day's high/low are oft proficient initial targets for directional trades.
On a rigid marketplace position day, VWAP should live on greater than the pin degree from the prior day. On a weak marketplace position day, VWAP should live on less than the pin degree from the prior day. When VWAP is around the pin level, you're inwards a short-term make market.
The targets you lot hitting or don't hitting the prior hateful solar daytime acquit upon the odds of hitting targets the side yesteryear side day. Promising historical patterns come upwards from such analyses.
You don't postulate to merchandise often. If you lot tin grab ane or ii moves to the targets during the hateful solar daytime amongst proficient size, you lot tin brand a proficient living too proceed trading costs down.
I volition live on posting the novel targets each morn via Twitter (Questions to Prepare for the Trading Day
Trading With Key Price Levels too Targets
Relative Volume too Volatility
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