Intraday Trading
How do we know how that market is doing on any day? If we turn on the news, we will hear something like “the Dow Jones is up 40 points…”, but this doesn’t really tell us what we need to know. It would (obviously) be better if this information
Intraday Trading
This is part 2 of a two part blog. Read the first part here. Quick summary: to test the validity of price levels in markets, we created a test in which we showed a bunch (1,535) of traders 20 panels of charts. Each panel included two charts which were
Intraday Trading
Thinking in checklists is useful, especially for shorter-term traders. Every market situation is full of rich and complex nuance. Every moment in the market (or in life) is unique because the precise conditions that have existed before do not exist this time. We cannot possibly hope to deal with the
Intraday Trading
Most people know that stock markets tend to be much more active on the open and close, and are often "dead" in the middle of the day. This is important information for everyone. For intraday traders, the need to focus trading activity on the open and close is
Intraday Trading
In my last post, I looked at intraday activity in stock indexes; I had a few requests to repeat the same work, showing time of day influences--intraday volume (tick volume) and trend strength--for a handful of major currencies. I'll just present the charts here without much commentary, as
Intraday Trading
I want to share a few observations on trading activity during the trading day. I will focus on the S&P 500 futures here, but may extend this (if there's interest) to look at a few currencies and maybe other commodities. The same general, broad concepts will
Intraday Trading
Over the past week or so, I've written a bit about short term trading strategies on my blog, and I've also done two podcasts (here and here.) Starting tomorrow, I'm going to start a few posts that will look into the statistical behavior of
Intraday Trading
When I was an active intraday trader, one of the things that was most important to me was having a rough roadmap for the day: what is most likely to happen, based on the current market structure and most likely emerging volatility conditions. This is the same concept that I&
Chart of the Day
* Momentum begets momentum—selling, usually, leads to further selling. Yesterday sent a loud and clear warning to bears in US stocks: there is a lot of hidden bullish conviction. The rally was, statistically speaking, the least likely outcome following Tuesday’s decline, and the message of that decline demands attention.
Intraday Trading
For intraday traders, trend days can offer outsized rewards. For some styles of traders, much of the work of trading is focused on capturing trend days, and most of the profits for the month may come from one or two trend days, with most of the other days showing small