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V.6:11 (429-431): Half-day trading techniques Part 3 by Kent Calhoun
V.6:11 (429-431): Half-day trading techniques Part 3 by Kent Calhoun
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Half-day trading techniques
Part 3
by Kent Calhoun
In volatile markets, profits increase with the price range, but so does the risk. In strong trending markets, traders will be more profitable not using profit exit points described in the September issue of Stocks & Commodities, but either exiting day trades on the close, or holding an overnight position using a trailing stop as protection.
This is particularly true when going into the close on a day that has wide price range, heavy volume, a strong close above the open and mid-range, and a close above the previous day's high. In more than 70% of the cases in which all of these conditions are met, the next day's opening price is higher.
Critical time periods
The value of time is critical during day-trading because there is less of it. Day-traders should be focused on their markets, noting the price velocity and volume on rallies and declines since each market has its own specific characteristics:
In volatile markets, profits increase with the price range, but so does the risk. In strong trending markets, traders will be more profitable not using profit exit points described in the September issue of Stocks & Commodities, but either exiting day trades on the close, or holding an overnight position using a trailing stop as protection.
This is particularly true when going into the close on a day that has wide price range, heavy volume, a strong close above the open and mid-range, and a close above the previous day's high. In more than 70% of the cases in which all of these conditions are met, the next day's opening price is higher.
Critical time periods
The value of time is critical during day-trading because there is less of it. Day-traders should be focused on their markets, noting the price velocity and volume on rallies and declines since each market has its own specific characteristics:
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