Re: [RT] next day trade

["Jim White" <jwhite43@xxxxxxxxxxxx>]

This trade would obviously have resulted in a loss if held from the open to the close. I also tracked 10 individual stocks that met the condition and experienced similar results - a loss at the close. So there appears no value here for buy and hold traders however for day traders it may be a different story. All stock indexes and 7 of 10 stocks exhibited upward movement from the open with opportunity to capture day trade profits. The value may be in indicating the initial direction from the open, a valuable indicator for day traders.

I personally believe that day trading is the only sensible way to trade in these uncertain times. I continue to research and develop trading techniques for the short term. The latest with great promise is a Trade Permission indicator which provides a trend comparison for two time frames in one indicator, giving advance warning of direction reversals. The theory is that the rate of change of two different trend indicators can forewarn of price reversals. It  has been extremely reliable in the FOREX markets. More latter.

 

Jim

----- Original Message -----

From: Jim White

To: realtraders@xxxxxxxxxxxxxxx

Sent: Friday, October 03, 2008 6:21 AM

Subject: [RT] next day trade

The major stock indexes yesterday met a condition in which the next day (today) is usually a major up move from the open to the close. I have not yet documented the reliability of this trade but it appears to be a good one. More later.

 

Jim White
Pivot Research & Trading Co.
PivotTrader.com

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