SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Timing the Trade the Wyckoff Way
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: coferspeculator who started this subject6/1/2004 5:03:56 PM
From: coferspeculator  Read Replies (1) of 14340
 
Today the market experienced an intra-day failure to the downside and went on to close near the highs on a wider spread and increased volume. The intra-day failure was the result of demand re-entering the market late in the day after it was withdrawn during the morning. The market ended the day in a over bought condition. For the past three days the market has remained range bound while trading on less than normal volume.

When supply had the opportunity to take control during the morning it was a no show. The speculative pressure to the upside and the limited pressure of supply remain positive factors and for now are offsetting the overbought condition of the market that occurred today.

Taking short positions when the market is overbought during a trading range is a good strategy when the speculative pressure is increasing to the downside. When it is moving in the other direction the taking of short positions during the trading range period is more risky and should only be done in issues that have recently been showing obvious weakness. Overbought or oversold conditions can last for longer periods when the pressure of the market is being applied in the same direction as the market move. If the market continues to trade in the range of the past several days this will help to reduce the overbought condition.

If the pressure reverses in the next few days, this will offer an excellent opportunity for the taking of short term short positions with the market in it's current overbought condition.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News