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>Have you thought about that?, I'm not talking about forecasting the
>Close price( nobody knows that, for sure ), just the RELATIVE POSITION
>of the Close / Open. That's why the OPEN is to me, the MOST IMPORTANT
>price of the day.
Efrain,
I have been watching the markets (stock) intraday myself. Also working at day
trading.
I have found that (for me) the open is helpful in terms of gapping up or down.
i.e., as far as giving some type of additional information. But either event is
actually reflecting some other event. That other event is what the institutions
do.
In particular if you watch for the block trades over 10,000 shares. Distinguish
between your buyer & sellers. You will get a good idea were prices will go
intraday.
For example GM was being pounded by the institutions on Friday morning. Mostly
buys, with share sizes falling in two categories 5,000 to 10,000 & 10,001 and
higher.
There were no sellers in those categories early in the morning. I believe GM
moved up well over a point intraday.
Now for the downside. If the price has moved up intraday (say a point or more)
and ends up eventually moving into a trading range for a while (20 minutes
plus). Watch for the large block trades on the sell side. You can follow the
price down until some institution decides to stop the drop.
In fact I am finding it to be very safe to immediately place an order to go
short. What is my risk/reward. The price could move higher. But if it is up 2
to 3 points already, the risk/reward is in my favor to go short after a large
sell block comes through.
Sometimes they will take them up higher but more than not the price comes down.
If so the large sell blocks don't show up.
To add one last thing. I also use specific buy sell signals as well. But I will
also say once a signal is given I will wait for the institutions to make there
move.
It seems to be the safest decision for me.
Harley Meyer
meyer093@xxxxxxxxxx
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